Strict construction of exemption notification denied relief for an electronic paver finisher lacking 7-metre laying capability without accessories.

The exemption for an electronic paver finisher with sensor device under Notification No. 21/2002-Cus. applied only if the machine itself was capable of laying bituminous pavement of 7 metres and above. The product literature showed that the imported machine, without accessories, could lay only 3 to 6 metres, while the bolt-on extensions were separately ordered accessories. An accessory does not change the basic character of the machine, and exemption notifications must be construed strictly on their plain terms. On that basis, the imported machine was not entitled to the exemption.

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Issues: Whether the imported electronic sensor paver finisher, claimed to be capable of laying bituminous pavement of 7 metres and above only with bolt-on extensions, was entitled to exemption under Notification No. 21/2002-Cus. dated 01.03.2002.

Analysis: The exemption entry covered an electronic paver finisher with sensor device for laying bituminous pavement 7 m size and above. The decisive test was whether the machine itself was capable of laying pavement of that width. The product literature showed that the machine, without accessories, was capable of laying pavement only from 3 metres to 6 metres, while the bolt-on extensions were separately ordered accessories. An accessory does not alter the basic character of the machine, and an exemption notification must be construed strictly on its plain language. In case of doubt, the benefit cannot be extended.

Conclusion: The imported machine was not entitled to the exemption under Notification No. 21/2002-Cus. dated 01.03.2002.

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