2007 (7) TMI 122 - AT - Central Excise

Cenvat/Modvat Alleged that appellant had no separate room for storage of inputs used in exempted the goods was provided accordingly contravene the Rule 57CC(9)of the CER,1944 but as appellant mentioned that the requirement of said rule is to maintain separate account Held demand not sustainable

Summary

Issues: Classification of rain coats made from rubberized textile fabrics under Heading 62.01 or 40.15.

In this case, the issue at hand is the classification of rain coats made from rubberized textile fabrics. The appellants sought classification under Heading 62.01, while the impugned order classified the product under Heading 40.15 as an article of apparel of vulcanized rubber. The appellants did not dispute the use of vulcanized rubber in the product, and a test report indicated that the fabric consisted of 21.9% polyester and weighed 313.2 GSM.

The appellants argued that the base fabric should be classified under Heading 59.06, citing chapter note No. 4 to chapter 59, which specifies that textile fabrics impregnated, coated, covered, or laminated with rubber weighing not more than 1500 GSM should be classified as rubberized textile fabrics under Heading 59.06. They referred to previous decisions where similar products like rain coats and air pillows were classified under different headings based on the same chapter note.

The Department's representative acknowledged the need to classify the goods based on the test report and relevant chapter notes. After considering the submissions, the chemical test report, the chapter note, and previous decisions of the Bench, it was concluded that the rain coats in question were made from rubberized textile and should be classified under Heading 62.01. Consequently, the impugned order was set aside, and both appeals were allowed. The issue of limitations raised by the appellants was not addressed as the appeals were decided in their favor on merit.