Strict construction of exemption notifications denied relief for rock drilling bits where the notification was not correspondingly amended.

Rock drilling bits were held outside Notification No. 198/76 because the exemption was confined to the cutting tools expressly listed under the unamended Tariff Item 51A, namely files and rasps, hacksaw blades, twist drills, reamers and milling cutters. A later amendment to Tariff Item 51A did not expand the notification, as no corresponding amendment or fresh exemption was issued. Applying strict construction, the exemption could not be enlarged by intendment or assumed drafting error, and the refund claim was therefore not maintainable.

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Issues: Whether rock drilling bits manufactured by the assessee were eligible for exemption under Notification No. 198/76 dated 16-6-1976 as goods falling under Tariff Item 51A.

Analysis: The notification granted exemption only to the cutting tools specifically covered by the unamended Tariff Item 51A, namely files and rasps, hacksaw blades, twist drills, reamers, and milling cutters. Rock drilling bits did not fall within those five categories. Although Tariff Item 51A was later amended to include the goods claimed by the assessee, there was no corresponding amendment to Notification No. 198/76 and no fresh notification extending the exemption. An exemption notification must be construed strictly, and no benefit can be added by intendment or by assuming a drafting error where the notification itself remained unchanged.

Conclusion: The goods were not covered by the exemption notification, and the refund claim was not maintainable.

Ratio Decidendi: An exemption notification must be strictly construed and cannot be extended to goods not expressly covered by its terms, especially where the tariff entry is later amended without a corresponding amendment to the notification.

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