Classification of magnetic buttons as buttons preserved exemption despite deletion of specific wording in the notification.

Magnetic buttons were classified as buttons under Tariff Heading 96.06 because that heading specifically covered buttons, while Heading 83.08 applied to clasps and allied base-metal articles. The later reclassification under Heading 83.08 was not justified on the tariff descriptions and facts. Although Notification No. 5/91-Cus. deleted the specific words "Magnetic Buttons", the goods still fell within the broader exempted description for buttons and fasteners. The omission of the specific term did not defeat exemption where the general entry continued to cover the goods, so the exemption benefit was maintained.

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Issues: (i) Whether magnetic buttons were classifiable under Tariff Heading 96.06 or under Tariff Heading 83.08; (ii) whether the goods were entitled to exemption under Notification No. 5/91-Cus. dated 16.01.1991 despite deletion of the specific expression "Magnetic Buttons".

Issue (i): Whether magnetic buttons were classifiable under Tariff Heading 96.06 or under Tariff Heading 83.08.

Analysis: The goods were imported as magnetic buttons and had earlier been assessed under Heading 96.06. Heading 83.08 covered clasps and allied articles of base metal, whereas buttons were specifically mentioned in Heading 96.06. On the facts and the tariff descriptions, the later reclassification under Heading 83.08 was not justified.

Conclusion: The goods were held to be classifiable under Tariff Heading 96.06.

Issue (ii): Whether the goods were entitled to exemption under Notification No. 5/91-Cus. dated 16.01.1991 despite deletion of the specific expression "Magnetic Buttons".

Analysis: Although Notification No. 5/91-Cus. omitted the specific words "Magnetic Buttons" from one entry, the goods, having been found classifiable as buttons under Heading 96.06, fell within the broader entry for buttons and fasteners. The later omission of the specific expression did not defeat the exemption where the general description covered the goods.

Conclusion: The goods were held entitled to exemption under Notification No. 5/91-Cus. dated 16.01.1991.

Final Conclusion: The classification adopted by the Department was rejected and the appellant was held entitled to the exemption benefit, resulting in allowance of the appeal with consequential relief.

Ratio Decidendi: Where imported goods are specifically describable as buttons under the tariff, a later omission of the same specific words from one exemption entry does not deny relief if the goods remain covered by the broader exempted description and the tariff heading itself supports classification as buttons.

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