Strict construction of exemption notification meant transformer parts were not excluded where the text did not expressly say so.

Exemption notifications must be construed strictly, and an exclusion applies only where the text expressly covers the goods in question. Because Notification No. 160/86 referred to transformers under Heading 85.04 but did not expressly exclude parts of transformers, those parts were not treated as excluded from exemption. The fact that other entries in the same notification specifically excluded parts where intended supported that interpretation, and Note 2(b) to Section XVI did not by itself extend the exclusion to transformer parts. Denial of exemption on that basis was therefore unsustainable.

---

---

Issues: Whether parts of transformers were excluded from exemption under Notification No. 160/86 when the notification referred only to transformers under Heading 85.04.

Analysis: The exemption notification had to be construed strictly. The notification expressly excluded transformers, but did not expressly exclude parts of transformers. The presence of specific exclusions of parts in other entries of the same notification supported the view that, where exclusion of parts was intended, it was stated in clear terms. The reliance on Note 2(b) to Section XVI for classification did not by itself extend the exclusion under the notification to transformer parts.

Conclusion: Parts of transformers were not excluded from the exemption merely because they were classifiable with transformers under Heading 85.04, and the denial of exemption was unsustainable.

---