Narrow construction of exemption exclusions preserves styrene butadiene latex eligibility under the notification

The exemption for rubber and latex under Notification No. 82/86 had to be read by giving Clause 1A a narrow construction as an exception to the main exemption provision. The principal clause distinguished between rubber, natural or synthetic, and latex, natural or synthetic, so the exclusion in Clause 1A covered only styrene butadiene rubber and oil extended styrene butadiene rubber. It did not extend to styrene butadiene latex, and the reference to Item 40.02 of the Customs Tariff Act, 1975 could not enlarge the exception beyond its text. Styrene butadiene latex therefore remained entitled to the exemption.

---

---

Issues: Whether styrene butadiene latex was excluded from the benefit of Exemption Notification No. 82/86, as amended, by clause 1A excluding styrene butadiene rubber and oil extended styrene butadiene rubber.

Analysis: The principal exemption clause distinguished between rubber, natural or synthetic, and latex, natural or synthetic. Clause 1A was an exception to that principal clause and therefore had to be construed in the light of the language of the main exemption. On that reading, the exclusion covered styrene butadiene rubber and oil extended styrene butadiene rubber, and not styrene butadiene latex. The reference to Item 40.02 of the Customs Tariff Act, 1975 did not justify enlarging the exception beyond its text.

Conclusion: Styrene butadiene latex was entitled to the exemption and the appeal failed.

---