Strict construction of customs exemption: a manufacturing device was not a "material" within the notification's express scope.

Notification No. 128/94-Customs limited "materials" to raw materials, components, intermediates, consumables, computer software, parts and packing materials required for manufacture. A stud tensioning device, being a complete machine used in the manufacturing process and not forming part of the finished goods, did not fall within those express categories. Its usefulness in production, treatment as essential by the licensing authority, or supply along with the product did not expand the exemption. Exemption notifications are construed strictly, so a device used in manufacture is not eligible unless the notification clearly covers it. The exemption was therefore denied.

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Issues: Whether the imported stud tensioning device was eligible for exemption under Notification No. 128/94-Customs as a "material" used in the manufacture of the final product.

Analysis: The notification defined "materials" to mean raw materials, components, intermediates, consumables, computer software and parts required for the manufacture of final goods, together with packing materials. The imported device was a complete machine used to maintain tension on studs and did not form part of the finished goods or fall within any of the specified categories. The fact that it was useful for the manufacturing process, had been treated as essential by the licensing authority, or was supplied along with the product did not determine exemption eligibility. Exemption notifications are to be construed strictly, and doubtful cases do not enlarge the scope of the exemption.

Conclusion: The stud tensioning device was not covered by the definition of "materials" in the notification and the exemption was rightly denied.

Ratio Decidendi: Eligibility to a customs exemption must be tested strictly against the language of the notification, and a machine or device used in manufacture does not qualify as a "material" unless it falls within the categories expressly covered.

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