Trade parlance controls exemption for ceramic colours, so liquid gold qualified despite different tariff classification.

An exemption notification describing goods as "ceramic colours" must be construed by trade parlance, technical understanding and actual end-use where the term is not defined in the tariff. Classification of liquid gold under a different tariff heading did not by itself defeat exemption, because the notification was based on functional description rather than tariff nomenclature. As the record showed use of liquid gold in ceramic and glass decoration and its acceptance as a ceramic colouring material, it fell within the notification and qualified for exemption under Notification No. 35/85-C.E., as amended by Notification No. 78/86-C.E.

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Issues: Whether liquid gold is a ceramic colour entitled to exemption under Notification No. 35/85-C.E. as amended by Notification No. 78/86-C.E.

Analysis: The exemption notification used the functional expression "ceramic colours", and the question was whether liquid gold answered that description. The fact that the product may be classified under Heading 32.07 as liquid lustre or similar preparation did not conclude the exemption issue, because the notification did not confine relief to the tariff nomenclature. Since the term "ceramic colours" was not defined in the tariff, the nature of the product had to be understood in trade parlance, by technical understanding, and by its actual use. The record showed that liquid gold was used in ceramic/glass decoration and was treated as a ceramic colouring material.

Conclusion: Liquid gold is a ceramic colour and is entitled to exemption under Notification No. 35/85-C.E. as amended by Notification No. 78/86-C.E.

Ratio Decidendi: Where an exemption notification describes goods by functional or trade usage terms, the description must be construed in trade parlance and by actual end-use, and exemption cannot be denied merely because the goods are classified under a different tariff expression.

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