Strict construction of customs exemption notification bars relief for stainless steel tubes outside prescribed chromium limits.

Concessional customs duty under Notification No. 228-A/83-Cus. was confined to stainless steel tubes meeting the specified chromium-content range. Where the imported goods were first declared to be above the permissible range and laboratory testing later showed chromium content below the prescribed minimum, the exemption could not be extended. In the absence of any tolerance margin or express relaxation in the notification, the exemption had to be applied strictly according to its terms, and non-conforming goods were outside its scope.

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Issues: Whether the benefit of Notification No. 228-A/83-Cus. was admissible when the imported stainless steel tubes did not satisfy the prescribed chromium-content range.

Analysis: The notification granted concessional customs duty only where the chromium content fell within the specified limits. The goods were initially declared as having chromium content above the permissible range, and the laboratory test ultimately showed a chromium content below the minimum prescribed. No tolerance margin was provided in the notification. In the absence of any prescribed relaxation, the exemption had to be applied strictly according to its terms, and the benefit could not be extended to goods not conforming to the stated specifications.

Conclusion: The exemption under Notification No. 228-A/83-Cus. was not admissible. The finding of the adjudicating authority was set aside and the Revenue succeeded.

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