Classification of slitting saws under Heading 98.06 and denial of exemption under Notification No. 69/87-Cus. confirmed.

Slitting saws were treated as classifiable under Heading 98.06, not Heading 8202.20, because the tariff scheme had already been authoritatively construed by a Larger Bench and that view was followed. The same reasoning also placed the goods within the exclusion in Notification No. 69/87-Cus. dated 1-3-1987, so the exemption benefit was unavailable. On that basis, the importer obtained classification relief while the exemption claim failed.

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Issues: (i) Whether slitting saws are classifiable under Heading 8202.20 as saws or under Heading 98.06 as parts of machinery; (ii) Whether the goods are excluded from the benefit of Notification No. 69/87-Cus. dated 1-3-1987.

Issue (i): Whether slitting saws are classifiable under Heading 8202.20 as saws or under Heading 98.06 as parts of machinery.

Analysis: The classification dispute was governed by the earlier Larger Bench ruling, which had examined the tariff structure and held that saws of this kind are to be treated as parts of machinery falling under Chapter 84 in the tariff scheme, while still being classifiable under Heading 98.06 by reason of the tariff arrangement. The Tribunal followed that binding view and found no reason to depart from it.

Conclusion: Slitting saws were held classifiable only under Heading 98.06 and not under Heading 8202.20.

Issue (ii): Whether the goods are excluded from the benefit of Notification No. 69/87-Cus. dated 1-3-1987.

Analysis: The notification had been considered in the Larger Bench decision, which held that the goods fell within the exclusion contained in the proviso and therefore could not claim the exemption benefit. That reasoning was applied to the present appeal.

Conclusion: The benefit of Notification No. 69/87-Cus. dated 1-3-1987 was held unavailable to the goods.

Final Conclusion: The importer succeeded on classification and the Revenue's challenge failed, resulting in restoration of the appellate relief in favour of the importer.

Ratio Decidendi: Where a larger bench has authoritatively construed the tariff scheme, the same classification must be followed, and an exemption notification expressly excluding the goods cannot be applied.

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