Exemption by product description continues despite later tariff entry when the stated conditions for miniature tyres are satisfied.

An exemption order for miniature tyres distributed as free gifts remained operative because it was framed by reference to the goods' characteristics and use, not to any specific tariff entry. The later introduction of a residuary tariff item did not curtail the exemption where the factual conditions in the order were satisfied. On that basis, miniature tyres manufactured by the assessee and given away as free gifts continued to qualify for full central excise exemption.

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Issues: Whether miniature tyres manufactured by the assessee and distributed as free gifts were entitled to exemption from central excise duty under the Board's circular letter dated 27 October 1964, notwithstanding the later introduction of the residuary tariff item.

Analysis: The exemption order granted relief on the basis of two factual conditions only, namely that the goods were miniature tyres manufactured by the assessee and that they were distributed as free gifts. The order did not link the exemption to any particular tariff item. Since there was no dispute on the satisfaction of those conditions, the later existence of a residuary item did not restrict or nullify the continuing operation of the exemption order.

Conclusion: The assessee was entitled to full exemption from duty for miniature tyres manufactured by it and distributed as free gifts.

Ratio Decidendi: Where an exemption order describes goods by reference to their characteristics and use, without tying the exemption to a particular tariff entry, the exemption continues to apply so long as the described conditions are satisfied.

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