End-use exemption for disaster relief goods cannot be denied merely because consignments passed through the manufacturer's depot.

Exemption under Notification No. 128/94 was considered for cement supplied for earthquake relief work where the consignment passed through the manufacturer's depot. The clearance documents, invoices and gate passes identified the goods as destined for the relief area and expressly recorded the exemption claim, while endorsements and the District Collector's certification supported the end-use condition. As there was no material showing mixing with depot stock or a fresh dispatch, a beneficial interpretation was applied and the exemption was treated as available despite the depot routing.

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Issues: Whether exemption under Notification No. 128/94 dated 7-9-1994 was available for cement supplied for earthquake relief work when the goods were routed through the manufacturer's depot and the clearance documents carried end-use particulars.

Analysis: The invoices and gate passes showed that the goods were consigned to the earthquake-affected area for relief work and expressly referred to the exemption claim. The clearance documents also carried endorsements certifying that the goods were to be used for earthquake relief work, and the District Collector's certification supported the ultimate end-use. On the routing through the depot, there was no material to show mixing with depot stock or reloading on a different conveyance for a fresh dispatch. The Tribunal applied a beneficial interpretation of the exemption notification and held that a narrow view based only on the depot routing would defeat the object of the notification where the relief-use condition was otherwise met on record.

Conclusion: The exemption was held to be available. The denial of exemption solely because the goods passed through the depot was rejected, and the appeals succeeded.

Ratio Decidendi: Where the clearance documents and supporting certification establish that the goods were actually supplied for the exempted relief purpose, exemption cannot be denied on a narrow or merely technical reading of the notification because the consignment passed through the manufacturer's depot en route.

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