Tariff classification controls exemption claim: product placed under Heading 39.16, outside Notification No. 4/97 coverage.

The dispute turned on tariff classification of the manufactured product for exemption under Entry 57 of Notification No. 4/97. The product was examined against competing Central Excise Tariff headings and was found not to fall under the headings claimed by the assessee; it was classified under Heading 39.16, which lay outside the exemption entry. As the product did not fall within the covered headings, the exemption could not be claimed, and the duty demand was upheld.

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Issues: Whether the product manufactured by the assessee was classifiable so as to attract exemption under Entry 57 of the table to Notification No. 4/97 dated 1st March 1997.

Analysis: The dispute turned on the correct tariff classification of the product. The product was examined against competing headings under the Central Excise Tariff and was found not to fall under the headings claimed by the assessee. The reasoning accepted the view that the product was classifiable under Heading 39.16, which was outside the scope of the exemption entry. Once the product was held to fall outside the covered headings, the exemption under the notification could not be claimed.

Conclusion: The assessee was not entitled to exemption under Entry 57 of Notification No. 4/97, and the duty demand was upheld.

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