Watch straps as essential watch components qualify for exemption where the notification list is illustrative, not exhaustive.

Wrist watch straps were treated as integral and essential components of a wrist watch, so they qualified for exemption as watch components under Notification No. 72/86-C.E. The Tribunal followed earlier decisions recognising the strap's functional role and preferred that line over contrary decisions that had not considered the Apex Court's ruling on the character of a watch strap. It also noted that the customs notification's list of components was only illustrative, and the excise exemption was not confined to expressly named components.

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Issues: Whether wrist watch straps manufactured by the appellants were entitled to exemption as watch components under Notification No. 72/86-C.E.

Analysis: The notification benefit had already been recognised in earlier decisions holding that a watch strap is an integral and essential part of a wrist watch. The contrary view in an earlier line of decisions was not preferred because it had been rendered without the benefit of the Apex Court ruling on the character of a watch strap. The Tribunal also noted that the list of components in the customs notification was only indicative and not exhaustive, and that the central excise notification did not restrict the exemption by naming components exclusively.

Conclusion: Wrist watch straps were held to be essential components of a wrist watch and entitled to the exemption.

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