Strict construction of exemption notifications bars retrospective excise relief for job-worked goods lacking proved conditions.

Central excise liability on job-worked goods manufactured from raw material received under Rule 57-F(2) was discussed with emphasis on marketability, exigibility, and exemption conditions. The goods were treated as marketable and therefore exigible to excise duty, and that finding had attained finality. Exemption under Notification No. 214/86-CE was unavailable because the prescribed conditions were not proved on the evidence. A further claim for retrospective benefit of Notification No. 83/94-CE dated 11-4-1994 was rejected because exemption notifications must be strictly construed and cannot operate retrospectively unless the language expressly so provides. The duty demand was sustained and the exemption claim failed.

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Issues: Whether the job worker was liable to pay central excise duty on the goods manufactured from raw material received under Rule 57-F(2) of the Central Excise Rules, 1944, and whether the assessee could claim exemption or retrospective benefit of the notifications relied upon.

Analysis: The liability to duty was upheld on the basis that the goods manufactured were marketable and exigible to excise duty, and that finding had attained finality. The claimed exemption under Notification No. 214/86-CE was rejected because the conditions for its application were not satisfied on the evidence. The plea for retrospective extension of Notification No. 83/94-CE dated 11-4-1994 was also not accepted, as exemption notifications are to be construed strictly and cannot be given retrospective effect unless the language so permits.

Conclusion: The duty demand was sustained, the exemption claim failed, and the issue was answered in favour of the Revenue.

Ratio Decidendi: An exemption notification must be strictly construed and its conditions must be proved to be satisfied; where the finding of marketability and exigibility has attained finality, duty liability cannot be reopened, and exemption cannot be extended retrospectively in the absence of express language.

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