Declared sensitivity meeting the exemption threshold justified relief for precision balances under the notification.

Precision balances with a declared sensitivity of 0.002 gm satisfied the exemption threshold in Notification No. 79/90-C.E., because that sensitivity was better than the prescribed 0.005 gm limit. On that basis, the benefit of the notification was extended to the goods, and the Revenue's challenge failed. The stated principle is that where the declared sensitivity of goods meets the exemption condition in the notification, the exemption cannot be denied.

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Issues: Whether the disputed precision balances, having a sensitivity of 0.002 gm., were eligible for exemption under Notification No. 79/90-C.E. dated 20-3-1990 on the basis of the prescribed sensitivity threshold.

Analysis: The sensitivity disclosed in the classification list was 0.002 gm., which was better than 0.005 gm., the equivalent of 5 mg. The balances therefore fell within the sensitivity requirement reflected in the notification. The lower appellate authority had accepted the declared sensitivity and extended the benefit accordingly, and no error was shown in that conclusion.

Conclusion: The benefit of Notification No. 79/90-C.E. dated 20-3-1990 was correctly extended to the disputed balances, and the Revenue's challenge failed.

Final Conclusion: The exemption was upheld for the goods in question, and the appeal was rejected.

Ratio Decidendi: Where the declared sensitivity of the goods satisfies the threshold prescribed in the exemption notification, the benefit of the notification cannot be denied.

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