Interpretation of an exemption Notification / Provisions - Definition / Legal Terminology - Customs

The issue concerning the interpretation of exemption notifications is no longer res integra, as it has been addressed in Commissioner of Customs (Import), Mumbai v. M/S Dilip Kumar and Company Ors. - 2018 (7) TMI 1826 - Supreme Court, which referenced the matter as follows. Para 52. To sum up, we answer the reference holding as under - (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 of the exemption clause or exemption notification. (2) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue. (3) The ratio in Sun Export Corporation Versus Collector of Customs, Bombay [ 1997 (7) TMI 117 - SUPREME COURT (LB)] is not correct and all the decisions which took similar view as in The ratio in Sun Export Corporation Versus Collector of Customs, Bombay is not correct and all the decisions which took similar view as in stands overruled. stands overruled. The aforesaid principles pertaining to interpretation of exemption notification were reiterated by Supreme Court in 'Th e State Of Maharashtra Vs. Shri Vile Parle Kelvani Mandal Ors'. - 2022 (2) TMI 720 - Supreme Court.