Ambiguous film exemption rules favour separate language versions treated as distinct feature films for concessional duty.

An ambiguous exemption notification for feature films was construed in favour of the assessee: where different language versions had separate censor certificates, separate introductions and distinct presentation, they could be treated as separate feature films for exemption purposes. The revenue could not enlarge the tax burden by implication, and restrictive interpretation was impermissible in a taxing provision. On that basis, the liberal classification adopted by the Board was upheld, the contrary view of the Tribunal was rejected, and the exemption was restored for the language versions.

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Issues: Whether the different language versions of the feature film were separate feature films entitled to exemption under Notification No. 275/77-C.E. and whether the Tribunal was justified in reversing the Board's grant of exemption.

Analysis: The exemption notification granted concessional duty to feature films and did not define with precision how a dubbed or language-version film was to be treated. The Court noted that the versions had separate censor certificates, separate introductions in the respective languages and distinct presentation in each language, while the Tribunal had not given independent reasons for rejecting the Board's view. In a taxing provision, any ambiguity must be resolved in favour of the citizen, and the revenue authorities cannot enlarge the tax burden by implication. On that basis, the Board's liberal classification treating the language versions as distinct films was held to be the proper approach.

Conclusion: The language versions were entitled to be treated as separate feature films for the purpose of the exemption, and the Tribunal's order was unsustainable.

Final Conclusion: The writ petition succeeded, the Tribunal's order was quashed, and the Board's order granting exemption was restored.

Ratio Decidendi: Where an exemption notification governing duty on films is ambiguous and does not clearly exclude language versions with separate censorship and presentation, the ambiguity must be construed in favour of the assessee and the benefit of exemption cannot be denied by a restrictive interpretation.

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