Fiscal notification prevails over circular, and rebate ambiguity must be read in favour of the assessee.

A Board circular cannot curtail rebate otherwise admissible under the governing notification and rule, because executive instructions cannot override the plain terms of a fiscal exemption or rebate scheme. The rebate claim was sustained where there was no factual basis to deny it on the ground of double benefit such as drawback or Modvat credit. In fiscal interpretation, the statutory text must be applied as written, and any ambiguity in a taxing or beneficial rebate provision must be construed in favour of the assessee. The rebate allowance was therefore left undisturbed.

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Issues: Whether a CBEC circular could curtail rebate admissible under the governing notification and rule, and whether the rebate claim under the export rebate scheme was correctly allowed.

Analysis: The rebate claim was governed by the statutory rule and the notification granting rebate, and there was no factual basis to deny it on the ground of double benefit such as drawback or Modvat credit. A circular issued by the Board could not override or restrict the scope of the notification and the rule, particularly when the circular was not shown to operate under the statutory power enabling binding directions. The governing principle in fiscal interpretation is that the words of the taxing provision must be applied as written, and where any ambiguity exists in a taxing statute or beneficial fiscal provision, the construction favourable to the assessee must prevail. Executive instructions cannot add restrictions not found in the statute or notification.

Conclusion: The circular could not curtail the rebate otherwise admissible under the notification and rule, and the rebate claims were rightly sustained in favour of the assessee.

Final Conclusion: The revision applications were rejected and the rebate allowance was left undisturbed.

Ratio Decidendi: Executive circulars cannot override the plain terms of a fiscal notification or rule, and any ambiguity in a taxing or beneficial rebate provision must be resolved in favour of the assessee.

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