Strict construction of exemption notifications requires clearance-wise verification of complete documents before concessional benefit is granted.

Exemption under Notification No. 10/97-CE had to be examined clearance-wise on complete supporting records, because missing or disputed essentiality certificates, issuing authority details, stated use, or DSIR registration prevented automatic allowance of the benefit. Applying strict construction of exemption notifications, only the remaining disputed clearances required reconsideration, as two issues had already attained finality in the earlier order. The matter was remitted to the original authority for fresh examination of the documents and for decision on merits and limitation for those remaining issues.

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Issues: Whether the benefit of Notification No. 10/97-CE dated 01.03.1997 could be allowed on the existing record in respect of the remaining disputed clearances, and whether those clearances required fresh examination in the light of the law governing strict interpretation of exemption notifications.

Analysis: The demand arose from claimed exemption under Notification No. 10/97-CE for supplies to institutions said to be entitled to concessional clearance. The record showed that for some clearances the essentiality certificate, the issuing authority, the specific purpose of use, or proof of DSIR registration was missing or disputed. In the light of the principle that exemption notifications must be strictly construed, entitlement had to be tested clearance-wise on the basis of complete documents. As two issues had already been finally decided in the earlier order of the same Bench and had attained finality, only the remaining issues required reconsideration.

Conclusion: The matter was remitted to the original authority for fresh examination of the documents and for decision on merits and limitation in respect of the remaining issues, while excluding the two issues already concluded earlier.

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