Exemption for equipment in running length upheld where silicone rubber sleeving was not treated as a consumable item.

Silicone rubber sleeving imported in running lengths was held not to be a consumable item merely because it was less durable than some other materials, and it was not excluded on that basis from exemption. The Tribunal also rejected the objection that the goods were raw material, since the decisive point was that they were supplied in running length rather than cut to length. Reading the notification in light of the product's multifarious uses and its object, the Tribunal held that the term equipment was wide enough to cover the goods. Exemption under Notification No. 211/76-Cus. was therefore available and the appeal succeeded.

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Issues: Whether silicone rubber sleeving imported in running lengths was excluded from exemption as a consumable item or raw material, or whether it fell within the expression equipment under Notification No. 211/76-Cus. dated 02-08-1976.

Analysis: The notification excluded consumable items, but the Tribunal held that silicone rubber sleeving could not be treated as consumable merely because it was less durable than some other materials. The expression consumable item was held to apply more appropriately to articles such as chemicals used up in research, and not to silicone rubber sleevings. The objection that the goods were raw material was also rejected, since the real issue was only that the sleeving was not cut to length. Having regard to the multifarious uses of the product and the object of the notification, the Tribunal held that the term equipment was wide enough to cover the goods in running length.

Conclusion: The goods were held eligible for exemption under the notification and the objection based on consumable nature or raw material failed.

Final Conclusion: The appeal succeeded and the assessee was granted consequential relief.

Ratio Decidendi: A product is not a consumable item merely because it is less durable, and an exemption notification using the term equipment may extend to goods in running length where the object of the notification supports such inclusion.

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