INTERPRETATION OF AMBIGUITY OF AN EXEMPTION NOTIFICATION
REFERENCE ANSWERED BY SUPREME COURT- CONSTITUTION BENCH
IN MATTER OF
COMMISSIONER OF CUSTOMS (IMPORT), MUMBAI V. M/S. DILIP
KUMAR AND COMPANY & ORS.
CIVIL APPEAL NO. 3227 OF 2007 – THE SUPREME COURT
OF INDIA
This decision was given with reference to a crucial issue as to
"where an ambiguity exists, who will get
the benefit, the assessee/subject or the revenue?"
This decision is pertaining only to a situation "where
there is an ambiguity in an exemption notification or exemption
clause".
The Constitution Bench held that such situation warrants
that the benefit to be accorded to the Revenue alone.
The Doctrine of strict interpretation will be also applied if
there is any ambiguity itself exists in a taxation provision and in
such a case the beneficiary will the assesse alone.
