Plain language controls exemption for sewing thread wound on cones under yarn notifications; denial of benefit was unsustainable.

Exemption under Notification No. 46/86, as amended, and from 16-3-1995 Notification No. 35/95 was available to sewing thread wound on cones. The notifications covered cotton yarn subjected to specified processes, including winding and reeling, and no further condition required the yarn to be fit for weaving fabrics after winding. The Tribunal applied the plain language of the exemption notifications and declined to read an additional restriction into them. The denial of exemption was therefore unsustainable, and the assessee was entitled to the benefit.

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Issues: Whether the benefit of Notification No. 46/86, as amended, and from 16-3-1995 Notification No. 35/95 was available to sewing thread wound on cones.

Analysis: The notifications granted exemption to cotton yarn subjected to specified processes such as weaving, warping, wrapping, winding or reeling. No condition was stated that, after winding, the yarn must be fit for weaving fabrics. The Tribunal followed its earlier view that the exemption had to be applied on the plain language of the notification and that no additional requirement could be read into it.

Conclusion: The exemption was available to the assessee and the denial of the benefit was unsustainable.

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