Strict construction of exemption notifications barred refund benefit for Nepal exports due to non-compliance with mandatory procedure.

Export of goods to Nepal did not justify refund or notification benefit where the prescribed procedure under the relevant notifications was admittedly not followed. The non-compliance was treated as a substantive breach, not a mere technical lapse, because the exemption or concession notifications imposed mandatory conditions for availment. Applying strict construction to such notifications, the benefit could not be extended in the absence of full procedural compliance, and the claim for refund or notification benefit was rejected.

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Issues: Whether the appellant was entitled to refund or notification benefit for export of goods to Nepal despite non-compliance with the prescribed export procedure under the relevant notifications.

Analysis: The export of goods to Nepal was not disputed, but the prescribed procedure under the notifications governing such exports was admittedly not followed. The deviation was treated as more than a mere technicality because the notifications imposed mandatory conditions for availing the benefit. In the absence of compliance with those conditions, the principle of strict construction of exemption or concession notifications was applied, and the claimed benefit could not be extended.

Conclusion: The claim for refund or notification benefit was rejected, and the appeals were dismissed in favour of the Revenue.

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