Tariff exclusion for alcohol all sorts applied narrowly, leaving alcohol derivatives outside the residuary excise entry.

Tariff Item 68 excluded "alcohol all sorts", and that exclusion was construed by reference to the statutory meaning under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. On that approach, supported by Board circulars and prior Tribunal and High Court decisions, only alcohol of the kind covered by the governing definition fell within the exclusion, while the impugned alcohol derivatives did not. The products were therefore treated as outside the residuary tariff entry and not dutiable under Tariff Item 68; the classification adopted by the lower authority was set aside.

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Issues: Whether the products manufactured by the appellants were classifiable under Tariff Item 68 of the First Schedule to the Central Excises and Salt Act, 1944, or stood excluded as "alcohol all sorts".

Analysis: Tariff Item 68 excluded "alcohol all sorts", and the meaning attributed to alcohol under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 was relied upon to ascertain the scope of that exclusion. The Board's circular and earlier Tribunal and High Court decisions were treated as confirming that the expression covered alcohol of the kind contemplated by the statutory definition and not the impugned alcohol derivatives. On that basis, the products were found not to fall within the residuary tariff entry.

Conclusion: The products were held to be outside Tariff Item 68 and were not dutiable under that entry; the appeal succeeded in favour of the assessee.

Final Conclusion: The impugned order was set aside and the classification adopted by the lower authority did not survive.

Ratio Decidendi: Where a tariff item expressly excludes "alcohol all sorts", the exclusion must be read in the sense supported by the governing statutory definition and contemporaneous departmental interpretation, and alcohol derivatives not covered by that meaning do not fall within the residuary entry.

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