Exemption for transformer parts under customs notification survives where the notification excludes transformers but not their parts.

Notification No. 160/86-C.E. was interpreted to exclude transformers, but not transformer parts. Transformer parts, even if classifiable with transformers under Heading 85.04, remained distinct as parts and could not be treated as complete transformers by implication. The principle applied was that, where exemption for parts is intended to be withdrawn, the notification must say so expressly. Because the notification did not specifically exclude transformer parts, the exemption benefit was available to them and was rightly allowed.

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Issues: Whether the benefit of Notification No. 160/86-C.E. dated 1-3-1986 was available to the manufacturers of transformer parts, where the notification excluded transformers but did not expressly exclude their parts.

Analysis: The exclusion in the notification was confined to transformers. Even if transformer parts were classifiable along with transformers under Heading 85.04, they remained only parts and could not be treated as complete transformers. Where the legislature intended to deny exemption to parts, it expressly said so. Since the notification did not specifically exclude transformer parts, the benefit could not be denied on implication.

Conclusion: The transformer parts were not excluded from the notification and the benefit was rightly allowed to the respondent.

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