Exemption for woven sacks on circular looms denied under the notification, as the exclusion remained applicable.

Woven sacks of polymers of ethylene or propylene made from fabric produced on circular looms were held outside the scope of Notification No. 223/86-C.E. as amended, because the exemption expressly excluded sacks manufactured on circular looms. The Board circular relied on by the claimant was treated as dealing with a different classification question and not the exemption's scope. A later explanation inserted by Notification No. 57/90-C.E. was treated as clarificatory and not as a change in the earlier legal position. On a harmonious reading of the proviso, sacks made from circular-loom fabric remained excluded from the exemption.

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Issues: Whether woven sacks of polymers of ethylene or propylene, made from fabric produced on circular looms, were entitled to exemption under Notification No. 223/86-C.E. as amended.

Analysis: The exemption granted by Notification No. 223/86-C.E. was expressly excluded where the woven sacks were manufactured on circular looms. The goods were admittedly woven sacks of polymers of ethylene or propylene and the fabric from which they were made was produced on circular looms. The Board circular relied on by the appellant dealt with a different classification issue and not with the scope of the exemption notification. The later explanation inserted by Notification No. 57/90-C.E. was treated as clarificatory and did not change the earlier position. On a harmonious construction of the proviso, sacks made out of fabric woven on circular looms fell within the exclusion.

Conclusion: The goods were not eligible for the exemption and the claim failed.

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