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1989 (12) TMI 46 - SC - Central ExciseWhether rubber products which are capable of being used for retreading or resoling of tyres but are only used for repairs would attract duty or not? Held that:- The notification of 1973 was one in which various amendments were carried out to a series of notifications relating to various items and does not contain anything to suggest that it was only a clarification that was intended to be given and not a prospective amendment of the previous notification. As already mentioned, the fact that the appellant is using or marketing the products for use, only for repairing tyres and conveyor belts is not controverted. In these circumstances, we are of opinion that the appellant assessee was entitled to exemption under the notification. In one sense, any rubber compound has a composition which theoretically permits it to be used either for repair purposes or for resoling or retreading of tyres. But the assessee's contention is that the product marketed by it has not the physical dimensions or technical properties to be capable of use for retreading or resoling. Also, the notification talks of products "used for" resoling and retreading of tyres and that is not the case here. The notification thus imports a limitation on the exclusion from the exemption specified in the parenthetical clause of the notification. That exclusion is only in respect of compounds used for resoling or retreading. Allow this appeal and hold that the assessee is entitled to the exemption prayed for.
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