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TMI Blog2018 (10) TMI 1247X X X X Extracts X X X X X X X X Extracts X X X X ..... It would appear that the audited balance sheet, evidencing specific quantities and values of imported and indigenously procured cotton would imply the existence of records that facilitated such segregation for statutory audit. The direction of the Tribunal was intended to that end. The original authority has failed to do so and, thereby, vitiated the impugned order. In the impugned order, the original authority has drawn upon an additional ground of waste of unidentifiable provenance having been mixed with prime cotton to conclude that the strict segregation mandated in the exemption notification supra has been contravened - On that issue, the decision of the Hon’ble Supreme Court in re Favourite Industries [2012 (4) TMI 65 - SUPREME COURT OF INDIA] has, in upholding the decision of the Tribunal, cleared the ambiguity holding that There cannot be any addition or subtraction from the notification for the reason the exemption notification requires to be strictly construed by the Courts. The wordings of the exemption notification have to be given its natural meaning, when the wordings are simple, clear and unambiguous. Matter remanded back to the original authority to decide th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... challenged on the ground of having been premised incorrect presumption and for not being in accord with the decision of the Hon ble Supreme Court in Commissioner of Central Excise, Surat-I v. Favourite Industries [2012 (278) ELT 145 (SC)]. 3. We have heard Learned Counsel for appellant and Learned Authorised Representative. We take note that the order now impugned before us is dealt with the dispute that had been brought up before us on an earlier occasion as also the demand of duty for a subsequent period that was not covered by our remand order. We also take note that the issue is one of establishing that the dutiable goods cleared into domestic tariff area were manufactured exclusively from indigenously procured cotton. The remand by the Tribunal was specific in directing the original authority to consider the contents of the balance-sheet adduced by the appellant for the first time ever. It was mandated on the part of the original authority to delve into the conclusions that could be drawn from the balance sheet referred to; any other interpretation of the contents of the order would be non-contextual. It would appear that the audited balance sheet, evidencing specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. v. Commissioner of Central Excise, Indore, (2005) 7 SCC 528 = 2005 (188) E.L.T. 3 (S.C.), this Court has held : 7. When the wordings of the notifications are clear and unambiguous they must be given effect to. By a strained reasoning benefit cannot be given when it is clearly not available. 28. In Compack (P) Ltd. v. Commissioner of Central Excise, Vadodara, (2005) 8 SCC 300 = 2005 (189) E.L.T. 3 (S.C.), this Court has observed thus : 20. Bhalla Enterprises laid down a proposition that notification has to be construed on the basis of the language used. Rukmani Pakkwell Traders is an authority for the same proposition as also that the wordings of some other notification are of no benefit in construing a particular notification. The notification does not state that exemption cannot be granted in a case where all the inputs for manufacture of containers would be base paper or paperboard. In manufacture of the containers some other inputs are likely to be used for which MODVAT credit facility has been availed of. Such a construction, as has been suggested by the learned counsel for the respondents, would amount to addition of the words only out of or purely o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (in which one of us was the party) has observed that the beneficial notification providing the levy of duty at a concessional rate should be given a liberal interpretation : 16. It is settled law that the notification has to be read as a whole. If any of the conditions laid down in the notification is not fulfilled, the party is not entitled to the benefit of that notification. The rule regarding exemptions is that exemptions should generally be strictly interpreted but beneficial exemptions having their purpose as encouragement or promotion of certain activities should be liberally interpreted. This composite rule is not stated in any particular judgment in so many words. In fact, majority of judgments emphasise that exemptions are to be strictly interpreted while some of them insist that exemptions in fiscal statutes are to be liberally interpreted giving an apparent impression that they are contradictory to each other. But this is only apparent. A close scrutiny will reveal that there is no real contradiction amongst the judgments at all. The synthesis of the views is quite clearly that the general rule is strict interpretation while special rule in the case of beneficia ..... 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