Exemption notification limited by tariff heading; compounded rubber sheets and unmet re-export condition kept the customs demand alive.

Imported compounded rubber sheets used for laying a synthetic athletic track did not qualify for exemption under Notification No. 109/94-Cus. because the notification was confined to synthetic tracks and artificial surfaces falling under Heading 95.06, while the goods were classified under Heading 4005.99. A circular relating to a different notification could not expand the scope of the exemption. The notification's condition requiring re-export within six months was also mandatory, and non-compliance could not be excused on the ground that the failure was not attributable to the importer. The exemption was therefore unavailable and the demand was sustained.

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Issues: Whether the imported compounded rubber sheets used for laying a synthetic athletic track were entitled to exemption under Notification No. 109/94-Cus. dated 13-7-1994, and whether the demand raised on failure to re-export the goods within the stipulated period was sustainable.

Analysis: The exemption under Notification No. 109/94-Cus. was confined to synthetic tracks and artificial surfaces falling under Heading 95.06 of the First Schedule to the Customs Tariff Act, 1975. The imported goods were compounded rubber in sheets and were classified under Heading 4005.99, not as synthetic tracks under Heading 9506.99. The circular relied upon by the appellants concerned a different notification and could not enlarge the scope of the notification in dispute. The notification also imposed a condition regarding re-export within six months, and non-compliance with that condition could not be excused on the ground that the failure was not attributable to the appellants.

Conclusion: The exemption was not available to the imported goods, and the demand was upheld against the appellants.

Ratio Decidendi: An exemption notification limited to specified goods by tariff heading cannot be extended to goods falling under a different tariff classification, and a stipulated re-export condition in the notification must be complied with as written.

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