Exemption notification scope limits duty relief on cement used by a 100% EOU unless expressly covered as eligible goods.

An exemption notification limited to goods used in or in relation to manufacture of export products, and to packing material for export goods, does not extend to locally procured cement for a 100% EOU unless the notification expressly covers it. Treating cement as capital goods for setting up the unit was insufficient to bring it within Notification No. 1/95. The duty benefit was therefore unavailable on the stated facts, and the exemption claim failed.

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Issues: Whether cement procured by a 100% Export Oriented Unit was eligible for exemption or duty benefit under Notification No. 1/95 on the footing that it constituted capital goods for setting up the unit.

Analysis: The Notification was read as extending relief only to goods used in or in relation to the manufacture of export products and to packing material used for export goods. Cement was locally procured and was neither shown to be covered by the notification nor by any other enabling notification. The claimed characterization of cement as capital goods did not bring it within the scope of the exemption.

Conclusion: The duty benefit on cement was not available under Notification No. 1/95, and the appellant's claim failed.

Final Conclusion: The exemption claim was disallowed and the matter was disposed of against the assessee.

Ratio Decidendi: An exemption notification confined to goods used in or in relation to manufacture, or packing material for export goods, cannot be extended to cement merely because it is asserted to be capital goods, unless the notification expressly covers it.

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