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"A plain reading of the above notification makes it clear that the benefit of exemption from payment of duty is not available to gold imported by M/s.MMTC Ltd if conditions of the proviso to para 2 of the Notification are not complied with . It is nobody's case that gem and jewellery units fulfillled the requirement of manufacture and export of gold and jewellery articles from the export processing zones. Therefore, duty liability definitely arises".

9. A bare reading of the notification makes the position clear that unless the procedure and the conditions stipulated are complied with exemption shall not be extended. It is trite law that in order to merit exemption, it has to be show that the claim clearly comes within the provisions providing for exemption. Provisions of this nature must receive strict construction. There is consensus of judicial opinion that exemptions from taxation have a tendency to increase the burden on the other unexempted class of tax-payers, and should be construed against the subject in case of ambiguity. It is a well-known principle that a person who claims an exemption has to establish his case. In Collector of Central Excise, Bombay-I and another v. M/s. Parle Exports (P) Ltd; , it was observed by the Apex Court that while interpreting an exemption clause, liberal interpretation should be imparted to the language thereof, provided no violence is done to the language employed. It must, however, be borne in mind that absurd results of construction should be avoided. The choice between a strict and liberal construction arises only in case of doubt in regard to the intention of the Legislature manifest on the statutory language. Indeed, the need to resort to any interpretative process arises only where the meaning is not manifest on the plain words of the statute. If the words are plain and clear and directly convey the meaning, there is no need for any interpretation. It is the true rule of construction of a provision as to exemption, as stated by the Apex Court in Union of India and others v.M/s. Wood Papers Ltd., and others . In the said case it was observed by the Apex Court as follows:

In Kedarnath Jute Manufacturing Co. v. Commercial Tax Officer, Calcutta and others: , and M/s. Parle Exports (P) Ltd., cases (supra), it was observed that where exemptions were concerned, the conditions thereof ought to be strictly construed and strict compliance with them exacted before a person could lay claim to the benefit of the exemptions. Above being the position, and in view of the clear finding of fact that the conditions were not complied with, the order of the Tribunal suffers from no infirmity on the issue relating the exemptions.