Broad interpretation of "similar" in exemption notifications supports tax relief where goods resemble each other despite different forms.

The term "similar" in an exemption notification was interpreted broadly, meaning goods need only resemble each other in relevant respects and need not be identical in form or tariff classification. On that construction, zinc powder cleared into the domestic tariff area was treated as similar to zinc ingots exported by the assessee because the notification did not impose a narrower definition. The denial of exemption was therefore unsustainable, and the assessee was entitled to the benefit of the notification.

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Issues: Whether zinc powder cleared into the domestic tariff area could be treated as "similar" to zinc ingots exported by the assessee for the purpose of exemption under Notification No. 23 of 2003-CE.

Analysis: The expression "similar" was construed in its wider sense and not as requiring identity in form or tariff classification. The Tribunal relied on the settled understanding that similar goods mean goods resembling each other in many respects and not necessarily goods that are the same in all respects. Since the assessee manufactured and exported zinc in the form of ingots and also cleared zinc in powder form, and the notification did not prescribe any narrower definition restricting the scope of similarity, the DTA clearances could not be excluded from the exemption merely because the exported and cleared forms differed.

Conclusion: The zinc powder cleared to DTA was held to be similar to the exported zinc ingots, and the denial of exemption was unsustainable in favour of the assessee.

Ratio Decidendi: In an exemption notification using the term "similar", the expression must receive a broader meaning and does not require identity of goods or sameness of tariff heading if the notification itself does not impose such a restriction.

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