Exemption for duty-paid fabrics after calandering upheld where the notification did not require calandering to be the only process.

Duty-paid fabrics brought back to the factory for calandering with plain rollers were treated as covered by the relevant exemption notifications, so no further duty was payable on clearance after calandering. The text rejects the narrower view that the exemption applied only where calandering was the sole process and not where the fabric had previously undergone other processes, because that limitation was not supported by the wording of the notifications. On that basis, the refund claim was maintainable and consequential benefits followed.

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Issues: Whether duty-paid fabrics brought back to the factory for calandering with plain rollers and cleared after calandering were exempt from further duty under the relevant exemption notifications, and whether the refund claim was therefore maintainable.

Analysis: A plain reading of the exemption notifications showed that duty-paid fabrics received back in the factory and subjected to calandering were covered by the exemption from further duty. The restrictive interpretation adopted by the lower authorities, that the notification applied only where calandering was the sole process and not where the fabric had earlier undergone other processes, was not supported by the terms of the notifications.

Conclusion: The revision application was allowed and the petitioners were held entitled to the exemption and refund with consequential benefits.

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