Strict construction of exemption notifications bars brand-name goods on job work from claiming exemption under the cited notification.

An exemption notification excluding specified goods bearing another person's brand name or trade name was construed strictly, so no implied exception could be read for job-work, captive-consumption, customer-order, or non-market-sale goods. Explanation IX did not narrow Clause 4, because use of the brand name to indicate a connection with the customer still fell within the exclusion. Trade mark law was held irrelevant to construing the notification. The assessee was therefore not entitled to the exemption, and the Tribunal's contrary view was overruled; the merits decision was noted as contingent on the outcome of a Constitution Bench reference concerning the binding effect of a Board circular.

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Issues: Whether goods manufactured on job-work basis and bearing another person's brand name or trade name are entitled to exemption under Notification No. 1/93-C.E., dated 28.02.1993.

Analysis: Clause 4 of the notification denies the exemption to specified goods bearing the brand name or trade name of another person. The exemption notification must be construed strictly, and no words can be added to create an exception for goods manufactured to customer order, used as inputs, or not sold in the open market. Explanation IX also does not dilute Clause 4, because the use of the brand name in relation to the goods by the manufacturer to indicate a connection with the customer still falls within the exclusion. The context of trade mark law was held to be irrelevant for construing the notification.

Conclusion: The assessee was not entitled to the exemption, and the Tribunal's contrary view was overruled.

Final Conclusion: The merits were decided against the assessee on the exemption issue, but the operative result was kept contingent upon the outcome of the Constitution Bench reference on the binding effect of the Board circular.

Ratio Decidendi: An exemption notification must be interpreted strictly according to its express terms, and where the notification excludes goods bearing another's brand name or trade name, no implied exception can be read in for captive-consumption or job-work goods.

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