Exemption Notification Interpretation: packed edible goods under Heading 210690 qualified for exemption, defeating duty demand and penalty.

Goods classifiable under Tariff Heading 210690 were held entitled to exemption under Serial No. 37 of Notification No. 12/2012-C.E. because the notification expressly covered sweetmeats, namkeens, bhujia and similar edible preparations, and the goods were sold in packed condition, meaning the exclusion for goods not cleared in sealed containers did not apply. The exemption was applied according to the plain language of the notification, and the competing classification under 21069099 was not accepted. On that basis, the duty demand and penalty were set aside.

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Issues: Whether the appellant's goods were entitled to exemption under Notification No. 12/2012-C.E. dated 17.03.2012 as classifiable under Tariff Heading 210690, and whether the duty demand and penalty could be sustained.

Analysis: The dispute turned on the correct reading of Serial No. 37 and Serial No. 38 of the exemption notification. The goods were found to be sold in packed condition, which meant they were cleared in sealed containers. On that factual basis, the entry excluding goods not cleared in sealed containers did not apply. The notification expressly covered sweetmeats, namkeens, bhujia and similar edible preparations under heading 210690, and the wording of the notification was treated as clear and decisive. The demand based on classification under 21069099 was therefore not accepted.

Conclusion: The appellant was held entitled to exemption under Serial No. 37 of Notification No. 12/2012-C.E. dated 17.03.2012, and the duty demand and penalty were set aside.

Ratio Decidendi: Where the terms of an exemption notification clearly cover the goods and the factual condition attached to a competing entry is not met, the notification must be applied according to its plain language and the exemption cannot be denied by implication.

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