Exemption for diamond segments used in blades upheld where prior ruling and Supreme Court dismissal supported the assessee.

Diamond segments used as parts in blades were held entitled to exemption under Notification No. 207/88-C.E. because they fell under Central Excise Tariff Chapter Heading 8202.00 and the same issue had already been decided in favour of the assessee in an earlier ruling. That earlier view had been taken in appeal to the Supreme Court, where the appeal was dismissed. On that basis, the Revenue's challenge was rejected and the exemption benefit was confirmed.

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Issues: Whether diamond segments used as parts in blades were entitled to the benefit of Notification No. 207/88-C.E. dated 01.06.1988.

Analysis: The dispute turned on the availability of the exemption notification to diamond segments classified under Chapter Heading 8202.00 of the Central Excise Tariff. The Tribunal noted that the same issue had already been decided in favour of the assessee in an earlier decision, which had also been carried in appeal to the Supreme Court and the appeal was dismissed.

Conclusion: The diamond segments were entitled to the benefit of Notification No. 207/88-C.E., and the Revenue's appeal was rejected.

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