Strict construction of exemption notification denied relief for imported replacement goods where India-based repair condition was unmet.

Imported replacement goods were denied exemption under Notification No. 80/70-Cus. because the condition requiring free repair or replacement through the manufacturer's agent or branch in India was not satisfied. The record showed that the manufacturer had no branch or agent in India for carrying out the replacement or repair free of charge, and that factual finding was not rebutted. Exemption notifications are construed strictly, so the claimant must establish clear compliance with every prescribed condition. A plea based on impossibility was rejected because the notification itself made the exemption conditional on the existence of the required arrangement in India.

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Issues: Whether the benefit of Notification No. 80/70-Cus. was available to the imported replacement goods when the condition requiring repair or replacement free of charge through the manufacturer's agent or branch in India was not satisfied.

Analysis: The notification granted exemption only to articles and component parts imported for replacement of defective articles or parts, subject to specified conditions. The record showed that the manufacturer had neither a branch nor an agent in India for carrying out the replacement or repair free of charge. The importer did not rebut this factual finding. Exemption notifications must be strictly construed, and the claimant must bring itself clearly within the stated conditions. Where the prescribed condition is not fulfilled, the benefit of the notification cannot be extended. The plea based on impossibility was rejected because the notification itself made the exemption conditional upon the existence of the required arrangement in India.

Conclusion: The condition for availing the exemption was not met, so the imported replacement goods were not entitled to the benefit of Notification No. 80/70-Cus.

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