Exemption notifications must be strictly construed; notified machinery parts were excluded from Heading 98.06 and denied exemption.

Imported worm wheels were held outside Heading 98.06 because Chapter Note 7(d) excludes parts of machinery notified by the Central Government as having general application. Notification No. 132/87-Cus. had specifically notified goods under Heading 84.83, so they could not be brought back within Heading 98.06. The exemption under Notification No. 69/87-Cus. was therefore unavailable. The text also reiterates that exemption notifications are construed strictly and the claimant must clearly establish coverage; any ambiguity in an exemption provision is resolved in favour of the Revenue.

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Issues: Whether the imported worm wheels were classifiable under Heading 98.06 of the Customs Tariff Act, 1975 and eligible for exemption under Notification No. 69/87-Cus. despite Notification No. 132/87-Cus. excluding goods under Heading 84.83.

Analysis: Chapter Note 7(d) of Chapter 98 excludes from Heading 98.06 any part of machinery notified by the Central Government as a part having general application. Notification No. 132/87-Cus., issued in exercise of that power, specifically notified goods falling under Heading 84.83. Once goods were notified as having general application, they could not be brought within Heading 98.06. Exemption notifications must be construed strictly, and a person claiming exemption must clearly establish coverage. Where there is ambiguity in an exemption provision, the benefit goes to the Revenue, not to the assessee.

Conclusion: The goods were not classifiable under Heading 98.06 and the benefit of Notification No. 69/87-Cus. was not available to the appellants.

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