Tariff classification of steel tubes settled under 7306.90, but exemption was denied under the applicable notification scheme.

Steel tubes manufactured for telephone and telegraph poles were treated as classifiable under sub-heading 7306.90, the Tribunal following precedent and treating the classification question as settled. On exemption, the relevant notification scheme, including Notification Nos. 197/87-CE, 89/95 and 62/95, was held not to extend to goods falling under sub-heading 7306.90. The product therefore qualified for the tariff classification claimed, but the exemption claim failed because the selected tariff entry was outside the notification coverage.

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Issues: (i) Whether the product known as Hamilton Tubes was classifiable under sub-heading 7306.90 or under sub-heading 7308.90; (ii) Whether the appellant was entitled to exemption under the relevant notifications.

Issue (i): Whether the product known as Hamilton Tubes was classifiable under sub-heading 7306.90 or under sub-heading 7308.90.

Analysis: The dispute concerned the proper tariff classification of steel tubes manufactured for telephone and telegraph poles. The Tribunal relied on the earlier decision treating the issue as concluded by precedent and noted that the point was no longer res integra in view of the decision in Quality Steel Products Pvt. Ltd., which had not been interfered with further.

Conclusion: The product was held classifiable under sub-heading 7306.90.

Issue (ii): Whether the appellant was entitled to exemption under the relevant notifications.

Analysis: The Tribunal considered the effect of Notification No. 197/87-CE dated 20.08.1987 together with Notification No. 89/95 dated 16.05.1995 and Notification No. 62/95 dated 16.03.1995, and held that the exemption scheme did not apply to goods falling under sub-heading 7306.90.

Conclusion: The appellant was held not entitled to the exemption.

Final Conclusion: The correct classification was affirmed in the assessee's favour, but the exemption claim failed, leaving the net result against the appellant on the duty relief issue.

Ratio Decidendi: Where a product is held classifiable under a tariff heading not covered by the exemption notifications, exemption cannot be granted under those notifications.

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