Strict construction of fiscal exemptions confined relief to the rice bran oil component, not the full admixture cleared.

The exemption under Notification No. 61/71, as amended, was confined to the vegetable product shown to be made from indigenous rice bran oil, not to the entire quantity of admixture cleared from the factory. The controlling language linked the concession to the extent the final product satisfied the notification's condition, and the tribunal's construction was found consistent with that wording. Applying the strict rule of interpretation for fiscal exemptions, any ambiguity was resolved against the assessee and in favour of the revenue. The assessee therefore could not claim exemption on the whole admixture, and the demand revision was upheld.

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Issues: Whether the exemption under Notification No. 61/71 as amended by Notification No. 40/72 applied to the entire quantity of admixture cleared by the assessee or only to the quantity of vegetable product made from indigenous rice bran oil.

Analysis: The notification exempted such vegetable product as is made from indigenous rice bran oil, subject to the stated conditions. The controlling words made it clear that the concession was linked to the extent the final product was shown to be made from indigenous rice bran oil, and not to the whole quantity of admixture cleared from the factory. The appellate tribunal had adopted the same construction, and that reading was held to be consistent with the language of the exemption. In any event, where two constructions of an exemption provision in a fiscal statute are possible, the ambiguity must be resolved against the assessee and in favour of the revenue.

Conclusion: The assessee was not entitled to the benefit of exemption on the entire quantity of admixture; the demand revision directed by the tribunal was upheld.

Final Conclusion: The exemption notification was construed narrowly, limiting relief to the rice bran oil component reflected in the product, and the appeals failed.

Ratio Decidendi: An exemption provision in a fiscal statute must be construed strictly, and any ambiguity as to its scope is resolved in favour of the revenue rather than the assessee.

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