Strict construction of customs exemption denied benefit where a commercial corporation imported goods for a research institution.

Customs exemption notifications must be construed strictly, and the benefit under Notification No. 70/81-Cus. was confined to scientific and technical goods imported by the research institution itself. Although the goods were intended for research use and the notification required certification that they were essential, non-indigenous, and not for commercial activity, the bill of entry, letter of credit, and foreign exchange arrangements showed that a commercial corporation was the importer. Because the notification did not extend to imports made by or on behalf of a research institution, the exemption was not available and duty-free treatment was denied.

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Issues: Whether the customs exemption under Notification No. 70/81-Cus. dated 26-3-1981 was available when the goods were imported by a commercial corporation on behalf of a research institution.

Analysis: The notification exempted scientific and technical instruments, apparatus and equipment imported by a research institution, subject to certification that the goods were not manufactured in India, were essential for research, would be used only for that purpose, and the institution was not engaged in commercial activity. The decisive expression in the notification was "imported by research institution". The bill of entry, letter of credit, and foreign exchange arrangements showed that the importer was the commercial corporation, not the research institution itself. The wording of the notification did not extend to goods imported "by or on behalf of" a research institution, and the exemption could not be enlarged by implication.

Conclusion: The exemption was not available, and the goods were not entitled to duty-free treatment under the notification.

Final Conclusion: Customs exemption under Notification No. 70/81-Cus. applies only where the import is made by the research institution itself and not where a commercial entity imports the goods on its behalf.

Ratio Decidendi: Exemption notifications must be construed strictly, and where the notification limits benefit to goods "imported by" a research institution, import by a commercial entity on behalf of such institution does not satisfy the condition.

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