Exemption under Notification No. 185/86-C.E. applies only to goods covered by the incorporated notifications and specified categories.

Notification No. 185/86-C.E. granted exemption only when read with the annexed notifications, which limited relief to specified categories such as goods manufactured by Central or State Government factories, village industry goods, and goods covered by the prison-related notification. A factory outside those notified categories could not claim the benefit for Item 68 goods. The appellants therefore were not entitled to the exemption, and the refund claim failed.

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Issues: Whether the appellants were entitled to the benefit of Notification No. 185/86-C.E. for goods falling under Item No. 68 of the erstwhile tariff.

Analysis: Notification No. 185/86-C.E. granted exemption to specified goods falling under the relevant tariff entry, but it was to be read with the notifications listed in its annexure. Those incorporated notifications extended relief only to specified categories such as goods manufactured by factories belonging to the Central Government or State Government, village industry goods, and goods covered by the prison-related notification. The appellants' factory did not fall within any of those notified categories.

Conclusion: The appellants were not entitled to the exemption and the claim for refund failed.

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