Classification of mill stones with frames follows the parts heading, and amended exemption applies to machinery parts.

Mill stones with frames were held to fall outside Heading 6801 because that heading specifically excluded such goods. As the goods were parts of milling machinery and Heading 8437 did not specifically provide for parts, classification was placed under the heading expressly covering parts, namely Heading 8485. The amended exemption notification, which extended relief from machines to parts as well, was applied to the goods because they were treated as parts of milling machinery. The assessee therefore received the classification benefit and the corresponding exemption benefit.

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Issues: (i) Whether mill stones with frames were classifiable under Heading 6801 or under Heading 8485 of the Central Excise Tariff Act, 1985; (ii) Whether the goods were entitled to exemption under Notification No. 111/88-C.E. dated 01.03.1988 as amended by Notification No. 141/88-C.E. dated 18.04.1988.

Issue (i): Whether mill stones with frames were classifiable under Heading 6801 or under Heading 8485 of the Central Excise Tariff Act, 1985.

Analysis: Heading 6801 specifically excluded mill stones with frames, and the goods in dispute were admitted to be mill stones with frames. Heading 8437 covered milling machines, but did not specifically provide for parts. Since the goods were parts of milling machinery, the appropriate entry was the residuary heading that specifically covered parts under Heading 8485.

Conclusion: The goods were not classifiable under Heading 6801 and were correctly classifiable under Heading 8485, in favour of the assessee.

Issue (ii): Whether the goods were entitled to exemption under Notification No. 111/88-C.E. dated 01.03.1988 as amended by Notification No. 141/88-C.E. dated 18.04.1988.

Analysis: The exemption notification originally covered machines, and the amending notification extended the benefit to parts as well. As the goods were parts of milling machinery, they fell within the amended notification.

Conclusion: The assessee was entitled to exemption under Notification No. 111/88-C.E. as amended, in favour of the assessee.

Final Conclusion: The appeal succeeded on both classification and exemption, and the impugned view denying the assessee the benefit could not be sustained.

Ratio Decidendi: Where a product is specifically excluded from one tariff heading and is a part of machinery not specifically covered in another heading, classification must follow the entry that expressly covers parts, and an amended exemption notification extending benefit to parts applies accordingly.

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