COLLECTOR OF CENTRAL EXCISE, BOMBAY vs MAHARASHTRA FUR FABRICS LTD.

The Supreme Court considered whether the respondent, a manufacturer of high fur fabrics, was entitled to an excise duty exemption under Notification No. 109/1986-C.E. as amended by Notification No. 3/1988-C.E. The primary legal issue was whether the respondent's product fell within the scope of a proviso inserted into the notification on January 19, 1988. The court examined the classification of the goods under Heading 60.01 to determine the eligibility for a 'nil' rate of duty.