Strict construction of exemption notifications bars extension to palladium catalyst, and customs valuation may be re-determined on contemporary import data.

An exemption notification must be construed strictly and cannot be extended by analogy to goods not expressly covered by its terms. On that basis, the benefit of Notification No. 21/2002-Cus. and condition 28B, which related to zinc metal, was held inapplicable to imported reprocessed palladium catalyst. The declared value was also rejected, and re-determination on the basis of contemporary import data under the Customs Valuation Rules, 1988 was upheld as proper.

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Issues: Whether the benefit of Notification No. 21/2002-Cus. dated 01.03.2002, particularly condition 28B relating to zinc metal, could be extended to imported reprocessed palladium catalyst, and whether the declared value was liable to be rejected and re-determined on the basis of contemporary imports under the Customs Valuation Rules, 1988.

Analysis: The notification was held to be specific to zinc metal and the conditions attached to it could not be enlarged by analogy to cover palladium. The imported goods were not covered by the plain wording of the exemption notification, and therefore the methodology prescribed therein could not be imported into the valuation exercise for the appellant's goods. Once the declared value was rejected, the redetermination based on contemporary import data under the Customs Valuation Rules, 1988 was found to be proper.

Conclusion: The benefit of the notification was not available to the appellant, and the re-determination of value under the Customs Valuation Rules, 1988 was upheld.

Ratio Decidendi: An exemption notification must be construed strictly and cannot be extended by analogy to goods not expressly covered by its terms; where the declared value is rejected, valuation may be re-determined in accordance with the statutory valuation rules.

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