Exemption notification exclusions must be read narrowly where machines classified under Heading 8419 fall outside the express refrigerating goods exclusion.

Ice cream and ice candy machines classified under Heading 8419 were held to remain within Notification No. 175/86 because the exclusion for refrigerating and air-conditioning machinery applied only to goods falling within the express excluded categories. The commentary notes that these machines were not classifiable as refrigerators or refrigerating equipment under Heading 8418, and the fact that they involved cooling in their process did not justify expanding the exclusion beyond its clear terms. On that reasoning, the exemption was available to the disputed goods and the departmental objection failed.

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Issues: Whether ice cream machines and ice candy machines, classified under Heading 8419, were excluded from the benefit of Notification No. 175/86 dated 1-3-1986 by the exclusion relating to refrigerating and air-conditioning machinery and appliances.

Analysis: The notification extended exemption to specified goods in the Annexure but excluded refrigerating and air-conditioning appliances, machinery, and accessories. The goods in dispute were not classified under Heading 8418 as refrigerators or refrigerating equipment; they stood classified under Heading 8419 as machinery for the treatment of materials by a process involving change of temperature. Since the exclusion clause was directed to refrigerating machinery and goods falling under the specified excluded headings, the goods classified under Heading 8419 could not be brought within that exclusion merely because they involved cooling in their process.

Conclusion: The goods were entitled to the benefit of Notification No. 175/86, and the departmental objection failed.

Final Conclusion: The exemption was available to the disputed goods, and the departmental appeal was dismissed.

Ratio Decidendi: Where goods are classified under a tariff heading not covered by the express exclusion in an exemption notification, they cannot be denied exemption by enlarging the exclusion beyond its clear terms.

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