List of Important Judicial Decisions on Scope of Exemption Notifications :

A. General Principles

Particulars	Citation
1. Exemption notifications represent the policy of the Government evolved to sub-serve public interest and public revenue. It is a part and parcel of the enactment subject to it not being against Article 14 of Constitution.	U.O.I. v. Paliwal Electricals P. Ltd 1996 (83) E.L.T. 241 (S.C.)
2. Supervening public equity overrides principle of promissory estoppel. Time bound notification can be withdrawn.	Shrijee Sales Corporation v. U.O.I. 1997 (89) E.L.T. 452 (S.C.)
3. Exemption notification is a class of delegated or conditional legislation. Power can be used not only for raising revenue but also to regulate the economy and for serving social objectives.	U.O.I. v. Jalyan Udyog 1993 (68) E.L.T. 9 (S.C.)
4. Classification between small and big manufacturers not discriminatory.	Murthy Match Works v. AC 1978 (2) E.L.T. J429 (S.C.)
5. Choice of date in exemption notifications cannot be questioned being a question of policy.	ITC Bhadrachalam Paper Boards Ltd. v. CCE 1994 (71) E.L.T. 334 (S.C.)
6. Exemption notification not valid if it does not recite public interest.	Ramdhan Pandey v. State of UP 1993 (66) E.L.T. 547 (S.C.)
7. Public interest means an act beneficial to general public.	MJ Exports v. CCE 1992 (59) E.L.T. 112 (T) [approved by SC]
8.In case of omission to claim exemption does not result in denial of benefit.	Hero Cycles Ltd. v Union of India 2009 (240) E.L.T. 490 (Bom.) [maintained by SC]
9. For purpose of claiming exemption from payment of tax applicable to a commodity, assessee must bring on record sufficient materials to show that it comes within the purview of notification.	Boc India Ltd. v State Of Jharkhand 2009 (237) E.L.T. 7 (S.C.)

B. How to Interpret?

Particulars	Citation
1. Notification to be treated as a part of the enactment itself.	CCE v. Parle Exports P. Ltd. 1998 (38) ELT 741 (SC)
2. Interpretation given at the time of enactment or issue to be given weight.
3.(a) Exemption notification should be construed strictly and reasonably having regard to the language employed. HMM Ltd. v. CCE 1996 (87) E.L.T. 593 (SC)	HMM Ltd. v. CCE 1996 (87) E.L.T. 593 (SC)
(b) Strictness of construction does not mean that circuitous process should be followed. Strictness should also result in giving full effect. Swadeshi Polytex Ltd. v. CCE 1989 (44) E.L.T. 794 (SC)	Swadeshi Polytex Ltd. v. CCE 1989 (44) E.L.T. 794 (SC)
(c) Express language to be given effect. Supposed intention to be gathered from language used.	GSFC Ltd. v. CCE 1997 (91) E.L.T. 3 (SC)
(d) Exemption notification not to be rendered nugatory or purposeless. The word singular includes plural.	CC v. United Electrical Industries Ltd. 1999 (108) E.L.T. 609 (SC).
4.(a) Exemption notification construable strictly.	Novopan India Ltd. v. CCE 1994 (73) E.L.T. 769 (SC)
(b) Exemption notification need not be construed strictly when there is no doubt or ambiguity in it.	SG Glass Works P. Ltd. v. CCE 1994 (74) E.L.T. 775 (S.C.)
5. Liberal construction which enlarges the term and scope of notification not permissible.	Rajasthan Spg. & Wvg. Mills Ltd. v. CCE 1995 (77) E.L.T. 474 (S.C.)
6. Exemption notification to be read as an ordinary man would read it. The word “and” to be read conjunctively as any one would do so.	CCE v. Shibani Engi- neering Systems 1996 (86) E.L.T. 453 (S.C.)
7. Expressions used in the Act should be understood in the same sense if used in Rules and notifications.	Prestige Engg. India Ltd. v. CCE 1994 (73) E.L.T. 497 (S.C.)
8.(a) Exemption cannot be claimed on the strength of Finance Ministers Budget speech.	BK Industries v. U.O.I. 1993 (65) E.L.T. 465 (S.C.)
(b) Notings on Government files cannot be used as an aid in construction.	Doypack Systems P. Ltd. v. U.O.I. 1988 (36) E.L.T. 201 (S.C.)
9. Exemption notification to be interpreted differently from statute. Strict interpretation applicable to find out whether a subject falls under the exemption. Once this is solved, liberal interpretation to be given by reading the notification as a whole.	Bombay Chemicals P. Ltd. v. CCE 1995 (77) E.L.T. 3 (SC), Novapan India Ltd. v. CCE 1994 (73) E.L.T. 769 (S.C.)
10.(a) Substantive conditions in notification to be satisfied mandatorily since it may facilitate fraud or introduce administrative inconveniences. Non- observance of procedural conditions condonable.	MCF Ltd v. Dy. Commissioner 1991 (55) E.L.T. 437 (S.C.); Thermax P. Ltd. v. CCE 1992 (61) E.L.T. 352 (SC); Formica India Division v. CCE 1995 (77) E.L.T. 511 (SC)
(b) If non-observance of procedural condition may facilitate fraud or administrative convenience, exemption can be denied.	Indian Aluminium com-pany Ltd. v. Thane Municipal Corporation 1991 (55) E.L.T. 454 (S.C.).
11. Burden to prove eligibility to exemption notification on the claimant.	Mysore Metal Industries v. CCE 1988 (36) E.L.T. 369 (S.C.); Motiram tolaram v. U.O.I. 1999 (112) E.L.T. 749 (SC)
12. Exemption cannot be denied on a ground not originally contended.	Prince Khadi Woollen Handloom Prod. Coop. Indl. Society v. CCE 1996 (88) E.L.T. 637 (SC)
13. Assessee can opt for that notification which is more beneficial.	CCE v. Indian Petro Chemicals 1997 (92) E.L.T. 13 (SC); Abrol WatchesPvt. Ltd v. CC 1997 (92) E.L.T. 311 (S.C.)
14. A particular item not expressly excluded does not mean that it is included.	CC v. Perfect Machine Tools Co. P. Ltd 1997 (96) E.L.T. 214 (S.C.)
15. Benefit not to be extended on the ground that such benefit is wrongly extended to others	Faridabad CT Scan Centre v. DGHealth Services 1997 (95) E.L.T. 161 (S.C.)
16. In interpreting an earlier notification, narrow or broader view to be taken can be decided based on subsequent notification.	Johnson & Johnson Ltd. v. CCE 1997 (92) E.L.T. 23 (S.C.)
17. Assessee cannot suffer on account of illegal act of Department. Exemption notification applicable.	Kuil Fireworks Industries v. CCE 1997 (95) E.L.T. 3 (S.C.)
18. Words in Tariff Schedule to be interpreted keeping in mind the rapid march of technology as industry is not static.	CC v. Lekhraj Jessumal & Sons 1996 (82) E.L.T. 162 (S.C.)