Strict construction of exemption notifications prevents implied inclusion of exempt branded goods in SSI clearance thresholds.

An exemption notification must be applied according to its plain language: branded goods cleared from another unit, though exempt under Notifications Nos. 49/2003-CE and 50/2003-CE, were not expressly covered by the exclusion in Notification No. 8/2003-CE and therefore could not be added to aggregate clearances for SSI eligibility. In the absence of express inclusion, their value could not be imported by implication to deny the exemption. The governing principle is strict construction of exemption notifications on their stated terms.

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Issues: Whether the value of branded goods manufactured at another unit and exempted under Notifications Nos. 49/2003-CE and 50/2003-CE could be included in the aggregate value of clearances for denying SSI exemption under Notification No. 8/2003-CE.

Analysis: The exemption notification had to be applied according to its plain terms. Paragraph 2(vii) of Notification No. 8/2003-CE excluded an assessee from the benefit only when the aggregate value of clearances crossed the prescribed limit in the preceding financial year, and paragraph 4 dealt with specified goods bearing the brand name or trade name of another person. The branded goods cleared from the other unit were not mentioned in paragraph 4 merely because they were exempt under Notifications Nos. 49/2003-CE and 50/2003-CE. In the absence of any express inclusion, the value of those goods could not be read into the SSI notification on the basis of supposed legislative intention.

Conclusion: The branded goods exempted under Notifications Nos. 49/2003-CE and 50/2003-CE could not be included for computing aggregate clearances under Notification No. 8/2003-CE, and the denial of SSI exemption was unsustainable.

Ratio Decidendi: An exemption notification must be construed strictly on its plain language, and goods not expressly covered by its exclusionary clause cannot be included by implication for computing the eligibility threshold.

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