Specific tariff classification for leather watch straps supports exemption as watch components under the relevant notification.

Leather watch straps were treated as specifically covered by Heading 91.13 of the Central Excise Tariff and therefore classified under Chapter 91 rather than as general leather articles. On that basis, the straps qualified as watch components for purposes of Notification No. 72/86-C.E., and the exemption could not be denied merely because a watch may be sold without a strap or because the strap is detachable from the watch. The text thus states that specific tariff coverage governs classification, and the related concessional-duty benefit applies where the exemption extends to goods falling within that chapter.

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Issues: (i) Whether leather watch straps are classifiable under Heading 91.13 of the Central Excise Tariff and Chapter 91. (ii) Whether such straps are eligible for exemption under Notification No. 72/86-C.E. dated 10-2-1986.

Issue (i): Whether leather watch straps are classifiable under Heading 91.13 of the Central Excise Tariff and Chapter 91.

Analysis: The classification turned on whether watch straps, though made of leather, were specifically covered by the tariff entry. The reasoning followed the view that watch straps are specifically mentioned in Heading 91.13 and therefore fall under Chapter 91 rather than being treated as articles of leather or some other general category.

Conclusion: Leather watch straps were held classifiable under Heading 91.13 and Chapter 91 of the Central Excise Tariff.

Issue (ii): Whether such straps are eligible for exemption under Notification No. 72/86-C.E. dated 10-2-1986.

Analysis: Once the straps were treated as watch components falling under Chapter 91, the exemption under Sl. No. 4 of Notification No. 72/86-C.E., as amended, became available. The denial based on the view that a watch can be sold without a strap, or that the strap does not enter the manufacturing process, was rejected as an insufficient ground to refuse the benefit.

Conclusion: The exemption under Notification No. 72/86-C.E. was held admissible to the leather watch straps.

Final Conclusion: The denial of exemption was set aside and the assessee succeeded on both classification and concessional-duty entitlement.

Ratio Decidendi: Where a tariff entry specifically covers watch straps, they must be classified under that specific heading, and exemption applicable to watch components falling under that chapter cannot be denied on the basis that the straps are detachable or not essential to the sale of the watch.

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