Broad reading of tariff entry for tar products entitled coal tar pitch goods to exemption under the notification.

Coal tar pitch products were treated as falling within Tariff Item 11(5) because the item was read broadly to include tar and related distillation products, including partially distilled tars and blends of pitch with tar distillation products. Pitch was recognised as a product obtained by distillation of tar, and the Court rejected a narrow distinction between tar and pitch. Applying the settled principle that ambiguity in a taxing entry or exemption provision must be resolved in favour of the assessee, the products were held eligible for exemption under Notification Tar 121/62-C.E.

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Issues: Whether coal tar pitch products manufactured by the assessee fell within Tariff Item 11(5) of the First Schedule to the Central Excises and Salt Act, 1944 so as to qualify for exemption under Notification Tar 121/62-C.E. issued under Rule 8(1) of the Central Excise Rules, 1944.

Analysis: Tariff Item 11 described tar in expansive terms and its inclusive part covered partially distilled tars and blends of pitch with creosote oils or other tar distillation products. The products in dispute were found to be coal tar pitch or to have the characteristics of coal tar pitch. Pitch is obtained by distillation of tar and was treated as falling within the expression tar distillation product. The Court declined to accept a narrow distinction between tar and pitch. It also applied the settled rule that any ambiguity in a taxing provision or exemption entry must be resolved in favour of the assessee.

Conclusion: The assessee's pitch products were held to fall within Tariff Item 11(5) and were therefore entitled to the exemption under the notification.

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