Exemption notification construction: chapter references in the rate column did not limit cotton-based fabrics' eligibility for duty relief.

Notification No. 82/88-C.E. was construed as granting exemption to textile fabrics impregnated, coated, covered or laminated with plastics when the goods were described in Column 3, and the reference in Column 4 to Chapters 52, 54 or 55 was treated as relevant only for fixing the rate of duty. The expression "base fabrics of cotton" was not limited by any chapter heading, so eligibility depended on the notification's plain language rather than the classification of the base fabric. The assessee was found to have discharged the burden of proving entitlement to exemption, and the benefit was extended to cotton-based fabrics even if the base fabric fell under a different chapter.

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Issues: Whether the exemption under Notification No. 82/88-C.E. applied only when the base fabric was classified under Chapters 52, 54 or 55, or whether the reference to those Chapters in the rate column was only for determining the rate of duty.

Analysis: The notification granted exemption to the goods described in Column 3, namely textile fabrics impregnated, coated, covered or laminated with plastics of base fabrics of cotton. The reference in Column 4 to Chapters 52, 54 or 55 was held to operate only for fixing the applicable rate and not as a condition restricting the description of eligible goods. The expression 'base fabrics of cotton' was not limited by any chapter heading. The burden on the assessee to establish entitlement to exemption was found to have been discharged on the plain language of the notification. The reasoning was supported by the approach adopted in the earlier decision relied upon on the construction of rate columns.

Conclusion: The notification was construed in favour of the assessee, and the benefit of exemption was held available to cotton-based fabrics even if the base fabric was classified under a different chapter.

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