Exemption notification applies by essential character, not use or assembly, for ferrite pot cores imported as ferrite goods.

Ferrite pot cores imported for customs purposes were held to fall within Notification No. 172/77-Cus. because their essential character and composition were ferrite, and that nature could not be displaced by the way the goods were used or assembled. The exemption could not be denied on an expanded or artificial classification when the goods themselves answered the description covered by the notification. The appellants were therefore entitled to the notification benefit and consequential relief.

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Issues: Whether ferrite pot cores imported by the appellants were entitled to the benefit of Notification No. 172/77-Cus. dated 8-8-1977 and were not liable to be excluded from such benefit on the basis of their nature or composition.

Analysis: The goods were found to be made of ferrite, and there was no dispute about their essential character. On that basis, the goods could not be excluded from the scope of the exemption notification merely because of the manner in which they were used or the components with which they were assembled. The nature and composition of the goods brought them within the notification benefit.

Conclusion: The appellants were entitled to the benefit of the notification and the appeal succeeded with consequential relief.

Ratio Decidendi: Where the essential nature and composition of imported goods fall within the scope of an exemption notification, they cannot be denied the notification benefit on an artificial or expanded classification.

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