1995 (5) TMI 29 - SUPREME COURT

Whether the blended yarn in which polypropylene fibre predominates was or was not entitled to benefit under Central Excise Notification No. 322/77-C.E., dated 1-12-1977?

Held that:- The contentions made on behalf of the appellant cannot be upheld in the facts of this case and in view of the wording of the notification dated 1-12-1977 as it exempts from duty polypropylene spun yarn falling under T.I. 18E, but not blended spun yarns containing polypropylene. Admittedly, the blended yarn manufactured by the appellant, containing 52% polypropylene and 48% viscose, will fall within the T.I. 18E, coming within the ambit of the tariff description `Spun (discontinuous) yarn in which man-made fibres of non-cellulosic origin, other than the acrylic fibre, predominate in weight'. But blended yarn in which polypropylene predominates in weight has not been exempted.

It is for the assessee to establish that the goods manufactured by him come within the ambit of the exemption notification. Since it is a case of exemption from duty, there is no question of any liberal construction to extend the term and the scope of the exemption notification. Such exemption notification must be strictly construed and the assessee should bring himself squarely within the ambit of the notification. No extended meaning can be given to the exempted item to enlarge the scope of exemption granted by the notification. Against assessee.