Ambiguity in exemption notification favoured importer, with copper scrap treated as eligible for relief subject to notification conditions.

Ambiguity in a fiscal exemption notification must be resolved in favour of the assessee. The expression "old scrap" in the entry for copper or copper alloys was held unclear and capable of more than one meaning, so the narrower construction urged against the importer was rejected. The benefit of the exemption could not be denied merely because the appellants were not sourcing the scrap from the local market. The imported copper scrap was therefore treated as eligible for exemption, subject to fulfilment of the other conditions in the notification.

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Issues: Whether copper scrap imported by the appellants was entitled to exemption under the notification for "old scrap of copper or copper alloys" and whether the expression "old scrap" excluded the appellants from the benefit of exemption.

Analysis: The relevant exemption entry granted relief for copper in crude form made from old scrap of copper or copper alloys. The expression "old scrap" was found to be unclear and not free from ambiguity. In fiscal exemption provisions, where the wording is doubtful and admits of more than one meaning, the interpretation favourable to the assessee is to be adopted. The benefit of the ambiguity could not be denied merely because the appellants were not the importers of the scrap from the local market.

Conclusion: The appellants were held entitled to the exemption in respect of the copper scrap imported during the relevant periods, subject to the other conditions of the notification being satisfied.

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