Exemption notification interpretation excludes additional customs duty absent express words, limiting coverage to central excise duty.

An exemption notification issued under Rule 8 of the Central Excise Rules, 1944 was construed by reference to "duty" as central excise duty under Rule 2(v) and Section 3 of the Central Excises and Salt Act, 1944. On that reading, a reference to Item 15-A in Notification No. 268/67-C.E. covered only central excise duty and did not extend to additional duty of customs levied under Section 3 of the Customs Tariff Act, 1975, even if quantified by reference to the same tariff item. The later Notification No. 70/85-C.E., which expressly expanded the proviso to include such additional duty, indicated that the earlier notification did not already do so.

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Issues: Whether, for the purpose of Notification No. 268/67-C.E. dated 1-12-1967, the expression "which have already borne the appropriate duty under Item 15-A" includes payment of additional duty of customs under Section 3 of the Customs Tariff Act, 1975, when the duty is quantified by reference to Item 15-A of the First Schedule to the Central Excises and Salt Act, 1944.

Analysis: The notification was issued under Rule 8 of the Central Excise Rules, 1944, and the word "duty" in that framework takes its meaning from Rule 2(v) as duty payable under Section 3 of the Central Excises and Salt Act, 1944. On that construction, the reference to Item 15-A in the exemption notification relates to central excise duty alone and not to the equivalent additional duty of customs. The later Notification No. 70/85-C.E. specifically expanded the proviso to cover additional duty leviable under Section 3 of the Customs Tariff Act, 1975, which supported the view that such coverage was not present in the earlier notification.

Conclusion: The payment of additional duty of customs under Item 15-A did not satisfy the condition in Notification No. 268/67-C.E., and the exemption was not available to the assessee.

Ratio Decidendi: A notification issued under Rule 8 of the Central Excise Rules, 1944 must be construed with reference to central excise duty as defined in the Rules, and an exemption referring to duty borne under a tariff item does not, without express words, extend to additional duty of customs quantified by the same tariff item.

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