Exemption notification prevails where asphalt mix description is satisfied, despite a competing tariff classification dispute.

Caulking compound treated on the evidence as asphalt mix qualified for exemption under Notification No. 76/86-C.E. because asphalt mix was expressly listed in the Schedule to the notification. The chemical test report and technical literature supported that description, so the competing tariff classification proposed by the department did not defeat the exemption claim. Where a product squarely answers the description of an item specifically included in an exemption notification, the exemption applies despite a different classification contention. The duty benefit was therefore accepted in favour of the assessee.

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Issues: Whether caulking compound, being asphalt based or asphalt mix, was eligible for exemption under Notification No. 76/86-C.E.

Analysis: The product was treated on the evidence as asphalt mix, supported by the chemical test report and technical literature. The notification specifically included asphalt mix in its Schedule, so the product answered the description of an exempted item. In that view, the competing tariff classification dispute did not defeat the claimed exemption.

Conclusion: The caulking compound was held eligible for the benefit of Notification No. 76/86-C.E., in favour of the assessee.

Final Conclusion: The appeal succeeded on the exemption issue, and the duty benefit claimed by the assessee was accepted.

Ratio Decidendi: Where a product squarely answers the description of an item expressly included in an exemption notification, the exemption applies notwithstanding the competing classification proposed by the department.

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