TaxTMI 
TaxTMI 
1991 (10) TMI 53
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....entral Government in exercise of the powers conferred by Sub-section (1) of Section 25 of the Customs Act, 1962 published an exemption notification dated August 2,1976, inter alia, providing that the goods specified in column (2) of the Table annexed to the notification and falling under the Heading Number in the First Schedule to the Customs Tariff Act when imported into India from specified countries would be entitled to the exemption from payment of duty as specified in column (4). On import the Assistant Collector of Customs levied auxiliary duty, additional duty and landing charges and declined to grant advantage of the exemption notification as claimed by the petitioners. The petitioners feeling aggrieved, approached this Court by fil....
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....6 Serial No. 6 of the exemption notification reads as follows : Sr.No. Description of goods Heading No. in the First Schedule to the Customs Tariff Act, 1975 Extent of tariff con- cession 6. POLYMERISATION and copolymerisation products (for example, polyethylene, polytetrahaloethylenes, polyisobutylene, polystyrene, polyvinyl chloride, polyvinyl acetate, polyvinyl chloroacetate and other polyvinyl derivatives, polyacrylic and polymethacrylic derivatives, cumarone-indene resins): (i) Polyvinyl chloride 39.01/06 50 per cent of the standard rate of duty; (a) Liquid (b) Powder and grains (c) Other forms (ii) Polyvinyl acetate (iii) Polystyrene (a) Liqui....
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....e and polystyrene which are items (i), (ii) and (iii). Shri Bulchandani submitted that column No. 2 of serial No. 6 of the exemption notification carves out a portion of the Heading No. 39.01706 of the Tariff Item and further provides that only three items set out in (i), (ii) and (iii) are entitled to exemption. It is not possible to accede to the submission of Shri Bulchandani. 4. The plain reading of serial No. 6 of the exemption Notification makes it clear that Polymerisation and copolymerisation products are entitled to exemption from payment of duty. It is not possible to accede to the submission of Shri Bulchandani that the expression "for example polyethylene, polytetrahaloethylenes etc." are merely redundant and have been blindl....
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....lene is clearly entitled to the advantage of exemption notification. Shri Bulchandani made a faint submission that the rate of exemption is set out only against the three items set out under (i), (ii) and (iii) but that fact, in our judgment, would make no difference to the entitlement of exemption to all the items of polymerisation and copolymerisation products. 5. Shri Bulchandani placed strong reliance upon the decision of the single Judge of this Court reported in 1990 (50) E.L.T. 229 (Shah Enterprises v. Union of India). The learned single Judge held that the advantage of the exemption under the notification is not available to polymerisation and copolymerisation products save and except those which are set out under (i), (ii), a....
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.... the tables annexed to the notification. In case the learned Judge felt that because of the looseness in drafting, two interpretations are possible, then the interpretation favourable to the tax payer ought to have been accepted. It is well settled rule of interpretation in taxing statute that the interpretation which is advantageous to the tax payer should be adopted. We have no hesitation to conclude that the advantage of the exemption notification is available to all the products which are set out under serial No. 6. The action of the Assistant Collector of Customs in refusing advantage of the exemption notification therefore cannot be sustained. 6. Accordingly, petition partly succeeds and it is declared that the petitioners are elig....