Exemption for goods made by specified industries extended to captively manufactured latex mix of a coir industry.

Notification No. 115/75-C.E. exempted goods manufactured in factories belonging to industries specified in its schedule, and latex mix captively produced by a coir industry fell within that wording. A coir industry was one of the specified industries, so all excisable goods manufactured by it were eligible for exemption unless expressly excluded. The earlier Supreme Court interpretation of a similarly worded notification supported this broad reading. Latex mix was therefore exempt, and the demand and penalties could not be sustained.

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Issues: Whether latex mix manufactured captively by a coir industry was entitled to exemption under Notification No. 115/75-C.E. dated 30-4-1975.

Analysis: The notification exempted goods falling under the tariff and manufactured in factories covered by the industries specified in its schedule. The appellants were found to be a coir industry, which was one of the specified industries. On the plain wording of the notification, all excisable goods manufactured by such an industry were eligible for exemption, except the goods expressly excluded. The earlier interpretation applied by the Supreme Court to a similarly worded exemption notification supported a broad reading of the exemption in favour of goods manufactured in the specified industry.

Conclusion: Latex mix manufactured by the appellants was eligible for exemption under Notification No. 115/75-C.E., and the demand and penalties could not be sustained.

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