Exemption for irregular rubber sheets under Heading 4405 upheld where notification covered plates, sheets and strips.

Compounded rubber in irregular sheet form, classifiable under Heading 4405, was held to fall within the expression "sheets" for the purpose of Notification No. 74/94-C.E. The Tribunal relied on its earlier view that irregular sheets and compounded rubber are covered by a similarly worded exemption for rubber products in the form of plates, sheets and strips. On that construction, the denial of exemption was not sustainable, and the notification's nil rate of duty applied to the goods covered by that tariff entry.

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Issues: Whether compounded rubber in irregular sheet form, classifiable under Heading 4405, was entitled to the benefit of Notification No. 74/94-C.E.

Analysis: The goods were found to fall under Heading 4405 of the Central Excise Tariff. The notification granted nil rate of duty to rubber products in the form of plates, sheets and strips under that heading. The Tribunal followed its earlier view that irregular sheets and compounded rubber are covered by the expression "sheets" for purposes of a similarly worded exemption notification. On that basis, the denial of exemption was not sustainable.

Conclusion: The appellant was entitled to the benefit of Notification No. 74/94-C.E., and the demand could not be sustained.

Ratio Decidendi: Irregular compounded rubber sheets classifiable under Heading 4405 are covered by an exemption notification for rubber products in the form of plates, sheets and strips, and denial of such exemption is unsustainable where the wording of the notification extends to that tariff entry.

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