Fiscal exemption for mixed fertilizers cannot be denied by adding unstated conditions to the notification.

Mixed fertilizers qualified for exemption under Notification No. 25/70 where they were made from two duty-paid fertilizers and contained not more than one nutrient. The notification did not require the mixture to be formed only by physical action, and the use of power was not prohibited. A fiscal exemption cannot be denied by adding conditions not stated in the notification. The contrary order-in-appeal was therefore set aside, and the exemption was held available when the express requirements were satisfied.

---

---

Issues: Whether the exemption under Notification No. 25/70 dated 1-3-1970 was available to the mixed fertilizers manufactured by the petitioners, and whether the benefit could be denied on the ground that the fertilizers were complex fertilizers obtained by chemical reaction rather than by a simple physical mixture.

Analysis: The relevant notification required that the mixed fertilizers be made out of two fertilizers on which duty had already been paid and that the mixed fertilizers contain not more than one nutrient. It did not prescribe that the mixture must be brought about only by physical action or that the use of power would be impermissible. The order-in-appeal proceeded on a condition not found in the notification and therefore did not correctly address the issue. The Government also noted that the benefit of paying duty on urea or reversing proforma credit on imported potash was not obligatory where the conditions of the notification were otherwise satisfied.

Conclusion: The exemption was held to be available if the conditions of the notification were fulfilled, and the contrary order-in-appeal was set aside.

Ratio Decidendi: A fiscal exemption cannot be denied by importing conditions not found in the notification itself, and the benefit must be granted where the expressly stated conditions are satisfied.

---