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Commissioner of Customs (Import), Mumbai v. M/s. Dilip Kumar and Company & Ors.

Civil Appeal · 2018 INSC 646Decided 30 Jul 2018
Civil Appeal No. 3327 of 2007
Justice Ranjan Gogoi · Justice N.V. Ramana · Justice R. Banumathi · Justice Mohan M. Shantanagoudar · Justice S. Abdul Nazeer

Background

This Constitution Bench judgment answers a question of law; it does not decide the appeal itself. The question was whether Sun Export Corporation v. Collector of Customs was right in holding that an ambiguous exemption notification should be read in the taxpayer's favour.

Decision Breakdown

This is not a final judgment in the appeal. The Court overruled Sun Export. It held that an exemption notification must be read strictly, that the burden of showing it applies is on the taxpayer, and that any ambiguity in an exemption goes in favour of the revenue. The appeal was sent to the appropriate bench to be decided on merits.

Lesson Learnt

A taxpayer claiming an exemption must show clearly that it applies; doubt in an exemption clause benefits the revenue.

Official source (sci.gov.in)View Judgment (PDF)

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