Strict compliance with conditional exemption notification required; mixed-material goods and unsupported alternative classification claim were rejected.

Exemption under Notification No. 132/86-C.E. was unavailable because the goods were not made wholly from plastic goods falling under Headings 39.01 to 39.15 on which duty had already been paid; fibre glass was also used, so the notification's source-and-composition condition was not met. The alternative claim for classification under Heading 70.14 was rejected because it was raised only in written submissions and was unsupported by evidence. The order denying exemption was affirmed, and the assessee's challenge failed in full.

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Issues: (i) Whether the goods were entitled to exemption under Serial No. 38 of Notification No. 132/86-C.E. dated 1-3-1986 as articles of plastic made from goods falling under Heading 39.01 to 39.15. (ii) Whether the alternative plea for classification of the goods under Heading 70.14 of the Tariff Act was sustainable.

Issue (i): Whether the goods were entitled to exemption under Serial No. 38 of Notification No. 132/86-C.E. dated 1-3-1986 as articles of plastic made from goods falling under Heading 39.01 to 39.15.

Analysis: The exemption applied only where the articles of plastic were made out of goods falling under Headings 39.01 to 39.15 on which duty had already been paid. The goods in question were not made wholly out of such plastic goods, as fibre glass was also used. On that basis, they could not satisfy the condition for exemption under the notification.

Conclusion: The denial of exemption under Serial No. 38 of Notification No. 132/86-C.E. dated 1-3-1986 was and stood upheld, against the assessee.

Issue (ii): Whether the alternative plea for classification of the goods under Heading 70.14 of the Tariff Act was sustainable.

Analysis: The alternative classification plea was raised only in written submissions and was unsupported by any material evidence. In the absence of any supporting record, the plea could not be accepted.

Conclusion: The plea for classification under Heading 70.14 of the Tariff Act was rejected, against the assessee.

Final Conclusion: The order denying exemption was affirmed and the appeal failed in entirety.

Ratio Decidendi: Exemption under a conditional notification cannot be granted unless the claimant strictly satisfies the prescribed source and composition requirements, and an unsupported alternative classification plea cannot be accepted.

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