Exemption notification for polyethylene films applied because the goods were not shown to exceed the notified thickness limit.

An exemption notification covering polyethylene films of all sorts with thickness not exceeding 0.25 mm applied to the respondent's goods because the notification was not limited to rigid films and no material showed that the films exceeded the prescribed thickness. On that basis, central excise duty was not payable and the demand could not be sustained. The limitation issue did not require consideration once the exemption applied. The stated principle is that where an exemption notification covers goods by description without narrowing the class of goods, the department must show that the goods fall outside the notified coverage before duty can be demanded.

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Issues: Whether the respondent was liable to pay central excise duty on polyethylene films in view of Notification No. 208/84 issued under Section 11C of the Central Excise Act, 1944.

Analysis: Notification No. 208/84 covered polyethylene films of all sorts of thickness not exceeding 0.25 mm falling under Tariff Item 15A of the First Schedule. The notification was not confined to films of rigid variety. As there was no material to show that the respondent's films exceeded the prescribed thickness, the exemption applied and duty was not payable. In view of this conclusion, the question of limitation did not require consideration.

Conclusion: The respondent was entitled to the benefit of the exemption notification and was not liable to pay the duty demanded.

Final Conclusion: The appeal failed and the order relieving the respondent from the duty demand was sustained.

Ratio Decidendi: Where an exemption notification covers goods of a specified description without restricting the benefit to a narrower variety, the burdened duty demand cannot be sustained unless the department shows that the goods fall outside the notified coverage.

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