Exemption notification exclusion for Chapter 68 goods barred relief where the tariff classification fell within the express carve-out.

Notification No. 69/87-Cus. did not extend exemption to goods falling under Chapter 68 because proviso (xii) expressly excluded millstones, grindstones and other Chapter 68 articles. The goods were found to fall within that excluded chapter, so the exemption claim failed. The exclusion operated directly against the assessee's request for relief, and the appeal was rejected on that basis.

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Issues: Whether the benefit of Notification No. 69/87-Cus., dated 1-3-1987 was available to goods falling under Chapter 68 in view of the exclusion contained in proviso (xii).

Analysis: The notification was examined and the proviso to clause (xii) was found to exclude goods which are millstones, grindstones or other articles specified in Chapter 68 from its scope. The goods in question were held to fall within Chapter 68, and therefore the exemption could not be extended. The exclusion operated directly against the claim for benefit under the notification.

Conclusion: The exemption under Notification No. 69/87-Cus. was not available to the assessee and the claim for relief failed.

Final Conclusion: The appeal was rejected because the goods were covered by the notification's exclusion and did not qualify for the claimed exemption.

Ratio Decidendi: Where an exemption notification expressly excludes goods falling within a specified tariff chapter, the benefit cannot be granted to goods found to fall within that excluded chapter.

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