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TMI Blog2018 (8) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... /2002 dated 01.03.2002. The lower authority denied the benefit of exemption on the ground that the exemption notification is meant for a complete line of DVD/CD manufacturing machine and they had not imported the complete line. He filed an appeal before the first appellate authority on the ground that the principles of natural justice were not followed and they were not given any notice or an opportunity to present their case. The first appellate authority, vide Order-in-Appeal No.72/2008 (H-II) CUS, dated 28.11.2008 remanded the matter back to the original authority to pass a speaking order after following the principles of natural justice. After following the principles of natural justice, the lower authority passed Assessment Order No.01 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following grounds: (1) That the exemption notification is available for manufacturing machinery which is what they have imported and the notification does not require that all machines indicated therein must be imported. (2) The Government has given exemption to IT industries with an intention to encourage the industry as it generates forex for the country and the authorities have failed to appreciate the spirit and essence of exemption notification. He relied on the following case laws: a. Oblum Electrical Industries Pvt Ltd [1997 (94) ELT 49 (SC)], in which it was held that while interpreting the taxing statute, the wordings in the notification have to be construed keeping in view the object and purpose of the notification. b. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed therein. It is his submission that even if some of the machinery listed therein are not included, they are still entitled to the benefit of exemption notification which has been unfairly denied by the lower authority and the first appellate authority. 6. Learned Departmental Representative reiterated the arguments made in the Order-in-Original and the Order-in-Appeal and opposed the appeal. It is his contention that the description of the goods in the exemption notification is that of manufacturing machinery or replication lines comprising certain machines; unless all the machines listed therein are imported, it does not become manufacturing machine or a replication line. Therefore, the appellant is not entitled to the benefit of the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility of the exemption notification. We find that there were case laws taking both views with respect to the benefit of exemption notification. Some took a liberal view while interpreting the entitlement of a beneficial exemption notification, while others took a strict view. The matter was finally referred to a five Member Constitutional Bench of the Hon'ble Supreme Court in the case of Dilip Kumar and Company and others [supra]. After examining all aspects and various judicial pronouncements, the Hon'ble Supreme Court took a final view on 30.07.2008 and held as follows: "(1) Exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters ..... X X X X Extracts X X X X X X X X Extracts X X X X
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