Exemption notifications cannot be narrowed by procedural rules when the main clause grants relief to goods made elsewhere.

An exemption notification covering parts of weigh-bridges produced in the factory or elsewhere could not be read narrowly so as to confine relief only to parts made in the same factory. The proviso requiring compliance with Rule 56A of the Central Excise Rules, 1944 was procedural and regulated the mode of availing the exemption, but it could not defeat the substantive benefit granted by the main clause. The fact that the duty involved was countervailing duty also did not exclude the notification's scope. On this construction, the assessee remained entitled to the exemption for parts produced outside the factory.

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Issues: Whether parts of weigh-bridges were entitled to exemption under Notification No. 310/77-C.E. when produced elsewhere than in the factory of production of weigh-bridges, and whether the procedure under Rule 56A of the Central Excise Rules, 1944 was only procedural or could be used to deny the substantive benefit.

Analysis: The notification granted exemption to parts of weigh-bridges produced in the factory of production or elsewhere, and the proviso merely prescribed the procedure to be followed where the parts were produced elsewhere. The relief could not be denied on the ground that the duty involved was countervailing duty, since the notification itself extended the benefit to such parts and Rule 56A only regulated the mode of availing the exemption. A restrictive construction that limited the benefit to parts produced in the same factory would defeat the main exemption clause.

Conclusion: The assessee was entitled to the exemption and the benefit could not be withheld on the ground that the parts had suffered countervailing duty or were produced outside the factory.

Final Conclusion: The order of the Tribunal was set aside and the Collector's order granting relief was restored, resulting in allowance of the appeal in favour of the assessee.

Ratio Decidendi: Where the main clause of an exemption notification grants relief to goods produced in the factory or elsewhere, a proviso prescribing a procedure for goods produced elsewhere cannot be used to curtail the substantive exemption; procedural compliance cannot defeat the exemption when the duty paid is otherwise within the scope of the notification.

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