Allied materials under excise exemption notification includes thinners used for the paints industry, securing exemption coverage.

Thinners manufactured from toluene, benzene and similar inputs were held to fall within the expression "allied materials" in Notification No. 75/84-C.E. for the paints industry. The Tribunal applied its earlier view that thinners are covered by that expression, so exemption is available where the goods answer that description. The factual distinction raised by the Revenue did not alter the legal coverage under the notification, and the assessee was entitled to the benefit.

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Issues: Whether thinners manufactured out of toluene, benzene and similar inputs were eligible for the benefit of Notification No. 75/84-C.E. dated 1-3-1984 as allied materials for the paints industry.

Analysis: The eligibility turned on the scope of the notification and the expression "allied materials" in the table appended to it. The Tribunal treated the issue as governed by its earlier decision holding that thinners fall within that expression and that the exemption benefit is available where the goods answer that description. The factual distinction suggested by the Revenue was not accepted as altering the legal position, since the decisive consideration was the coverage of thinners by the notification.

Conclusion: The thinners were covered by the expression "allied materials" and the assessee was entitled to the benefit of the notification.

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