Exemption notification substitution limits cumulative tax relief under later notification for covered goods

A later exemption notification was treated as substituting the earlier one, so the assessee could not combine benefits under both notifications for goods covered by Tariff Entry 14D. The exemption was therefore confined to the limit specified in the later notification, and any amount exceeding that limit remained liable to duty. The explanation advanced by the appellant did not alter the substitution effect of the later notification, and the claim for a higher cumulative exemption failed.

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Issues: Whether the second exemption notification operated in substitution of the first so that the assessee could claim exemption only up to the limit prescribed in the later notification.

Analysis: The appeal concerned exemption for goods covered by Tariff Entry 14D for the relevant financial year. The Court accepted the view that the later notification was intended to replace the earlier one and therefore the benefit under the first notification could not be cumulatively claimed with the later notification. As the goods were covered by the notifications, the explanation relied upon by the appellant did not assist its claim.

Conclusion: The second notification substituted the first, and exemption was confined to the later limit of Rs. 5,00,000. The excess amount was liable to duty, and the appellant's claim failed.

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