Plain meaning of exemption notification prevails; later restriction cannot curtail an earlier customs duty exemption.

Notification No. 103/61-C.E. exempted synthetic organic dyestuffs manufactured wholly or partly from imported intermediates to the extent of countervailing customs duty paid on those intermediates, and its plain wording was not limited to intermediates falling under Tariff Item 14-D. Notification No. 104/79-C.E. could not narrow that exemption, because a later rule or amendment cannot whittle down the scope of an earlier exemption unless the restriction is clearly expressed. The appellants were therefore held entitled to the exemption, and the contrary view was rejected.

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Issues: Whether the appellants were entitled to the benefit of Notification No. 103/61-C.E. dated 20-4-1961 in respect of imported intermediates falling under Tariff Item 68, and whether Notification No. 104/79-C.E. could restrict the scope of that exemption.

Analysis: Notification No. 103/61-C.E., issued under sub-rule (1) of rule 8 of the Central Excise Rules, 1944, exempts synthetic organic dyestuffs manufactured wholly or partly out of imported intermediates from duty to the extent of countervailing customs duty paid on such imported intermediates. The text of the notification does not confine the imported intermediates to Tariff Item 14-D, and its plain language extends to imported intermediates falling under any Tariff Item. Notification No. 104/79-C.E., made under Section 37 of the Central Excises and Salt Act, 1944 and introducing a restriction in rule 56-A of the Central Excise Rules, 1944, could not whittle down the scope of Notification No. 103/61-C.E., particularly for the refund period in question.

Conclusion: The appellants were entitled to the exemption under Notification No. 103/61-C.E., and the contrary view was rejected.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: An exemption notification must be applied according to its plain wording, and a later rule or amendment cannot curtail its scope unless the restriction is clearly expressed.

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