Exemption notification for Heading 85.04 cannot be denied to transformer parts absent an express exclusion.

An exemption notification covering goods under Heading 85.04 could not be denied to parts of transformers merely because the notification expressly excluded only transformers and chokes for fluorescent tubes. Parts of transformers remained goods falling within the same heading and were not specifically excluded. In the absence of an express exclusion, the exemption under Notification No. 160/86-C.E. was held applicable to the disputed goods, and the denial of exemption was found incorrect.

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Issues: Whether parts of transformers falling under Heading 85.04 were entitled to the benefit of Notification No. 160/86-C.E., or stood excluded from the exemption.

Analysis: The notification granted exemption to goods specified in the relevant table and falling under the stated tariff heading, while expressly excluding only transformers and chokes for fluorescent tubes from the coverage of Heading 85.04. Parts of transformers were goods falling under the same heading and were not specifically excluded by the notification. In the absence of an express exclusion, the benefit of the exemption could not be denied merely because the goods were parts of transformers.

Conclusion: The benefit of Notification No. 160/86-C.E. was available to parts of transformers, and the denial of exemption was incorrect.

Final Conclusion: The impugned order was set aside and the appeal was allowed, with the exemption held admissible for the disputed goods.

Ratio Decidendi: Where an exemption notification applies to goods classified under a specified tariff heading, the benefit cannot be denied to a sub-category of those goods unless that sub-category is expressly excluded.

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