Strict compliance with exemption conditions bars customs relief where prior authorisation under the Control Order was absent at import.

Customs exemption under Notification No. 2/87 was denied because the importer did not satisfy the stipulated condition of being authorised under the Control Order at the relevant time. The notification was conditional on import by a person authorised to extract, refine or use solvent extracted oils, and the required authorisation had not been obtained when the goods were imported. As the eligibility condition was not met, the claimed exemption could not be granted and the denial was upheld.

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Issues: Whether the appellant was entitled to exemption under Notification No. 2/87 dated 1-1-1987 for the imported steel rolls used for cracking seeds, when it was not authorised under the Solvent Extracted Oil, De-oiled Meal and Edible Flour (Control) Order, 1967 at the relevant time.

Analysis: The exemption was made conditional upon import by a person authorised under the Control Order to extract, refine or use solvent extracted oils. The appellant's authorisation had not yet been obtained at the material time and the Ministry had indicated that the relevant licence would normally issue only after the plant was fully installed and ready for commissioning. Since the condition attached to the notification was not satisfied, the claim to exemption could not succeed.

Conclusion: The exemption was rightly denied and the appeal failed.

Final Conclusion: The impugned order denying customs exemption was upheld on the ground of non-fulfilment of the notification condition regarding authorisation.

Ratio Decidendi: An exemption notification conditioned upon prior authorisation must be strictly complied with, and benefit cannot be granted unless the claimant satisfies the stipulated eligibility at the relevant time.

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