The burden of proving applicability of exemption notification is on Customs or assessee ? When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity can be claimed by the assessee ?

Exemption notifications 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. 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.

SUN EXPORT CORPORATION VERSUS COLLECTOR OF CUSTOMS, BOMBAY favouring assesse is set aside and all the decisions which took similar view as in Sun Export Case (supra) stands overruled.

COMMISSIONER OF CUSTOMS (IMPORT) , MUMBAI VERSUS M/S. DILIP KUMAR AND COMPANY & ORS, SUPREME COURT, decided on 30.07.2018

Note: In the light of above SC order, The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 will be effective from 21.09.2020. Rule 3 Preferential tariff claim -  puts the responsibility on importer to prove his consignment qualify as originating goods for preferential rate of duty under that agreement.

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