Excise Duty exemption notifications based on “Intended Use” must be liberally construed in assessee’s favour

Rashtriya Chemicals And Fertilizers Limited Vs Commissioner of Central Excise And Service Tax (LTU) (Supreme Court of India) Conclusion: Excise exemption notifications based on “use” or “intended use” should be interpreted liberally in favour of the assessee as once the goods were used for the intended purpose, the fact that a portion was incidentally used for other activities did not disentitle assessee from claiming the exemption. Held: Appellant, a public sector undertaking engaged in manufacture of fertilizer and ammonia, procured Naphtha at nil rate of duty under exemption notific...