1990 (1) TMI 320 - AT - Central Excise

Summary

Issues:
Eligibility of hydraulic brake hoses for exemption under Notification 197/67 Central Excise.
Classification of brake hose assemblies under Chapter 40.09 of Central Excise Tariff Act, 1985.

Analysis:
The judgment by the Appellate Tribunal CEGAT, New Delhi, involved considering the eligibility of hydraulic brake hoses for exemption under Notification 197/67 Central Excise, which grants exemption to piping and tubing designed for use as hydraulic or air brake hoses in motor vehicles. The appellants manufactured hose assemblies by purchasing rubber hoses, cutting them to required sizes, and fitting them with metallic end fittings. The issue arose when the benefit of the exemption was denied to the appellants by the lower authorities. The Asstt. Collector and the Collector (Appeals) rejected the claim, stating that the exemption was only for piping and tubing and not for hose assemblies. The classification of rubber brake hoses under Chapter 40.09 of the Central Excise Tariff Act was crucial in this case. It was noted that hydraulic brake hoses fell under Heading 4009.92, which covers tubes, pipes, and hoses designed for conveying air, gas, or liquid. A previous decision by the Tribunal upheld the classification of hose assembly of vulcanised unhardened rubber under sub-heading 4009.92, supporting the appellants' position.

The notification in question, No. 197/67, specifies various categories eligible for exemption, including piping and tubing designed for use as hydraulic or air brake hoses in motor vehicles. The Tribunal referred to a past decision regarding the classification of brake hose assemblies under a different tariff item and emphasized that the current dispute had to be resolved based on the admitted classification of brake hose assemblies under Chapter 40, Heading No. 4009.92. It was highlighted that the scope and coverage of the entries in the tariff heading and the notification were not the same. The Tribunal concluded that the appellants' products fell within the ambit of the notification as piping and tubing designed for use as hydraulic or air brake hoses in motor vehicles, making them eligible for the exemption. The presence of end fittings on the hoses did not disqualify them from the benefit of the exemption under Notification 197/67.

In the final decision, the Tribunal set aside the impugned order and allowed the appeal, granting consequential relief to the appellants. The judgment clarified the classification of brake hose assemblies and affirmed the eligibility of the appellants' products for exemption under the specified notification, emphasizing the importance of the specific wording and scope of the relevant tariff headings and notifications in determining eligibility for exemptions under the Central Excise Tariff Act.