Exemption notification for sugar construed in assessee's favour after court followed the consistent earlier interpretation.

A notification issued under Rule 8(1) of the Central Excise Rules, 1944 was construed to determine whether it exempted the sugar in question under serial No. 2. The Court preferred the interpretation already adopted by earlier reported decisions, several High Courts, and the Tribunal, and rejected the contrary view taken by a single Judge. On that construction, the exemption notification operated in favour of the assessee, and the issue was answered accordingly.

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Issues: Whether the notification issued under Sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 exempted the sugar in question on the proper construction of serial No. 2 of the notification.

Analysis: The notification relating to free sale sugar and levy sugar had already been interpreted by several High Courts and by the Tribunal in a manner different from the view taken by the single Judge. The Court preferred the reasoning adopted in the earlier reported decision and aligned itself with the interpretation consistently taken by the other courts, rejecting the contrary construction.

Conclusion: The issue was answered in favour of the assessee, and the exemption notification was construed in the assessee's favour.

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