2007 (7) TMI 155 - AT - Central Excise

Uncovered rubberized coir mattresses are classifiable under sub-heading 9404.29 & are not eligible to exemption for coir industry under Not. 115/75 during the material time Because Not. 115/75 has been amended by Not. 7/98 to exclude impugned goods from exemption

Summary

Issues: Classification of goods as rubberized coir sheets or mattresses, eligibility for exemption under Notification 115/75-C.E.

Classification of Goods:
The lower appellate authority classified the goods as rubberized coir sheets, allowing exemption under Notification 115/75-C.E. The Department appealed, arguing the goods were rubberized coir mattresses based on size and manufacturing process. The Tribunal analyzed Chapter 94.04, noting mattresses of cellular rubber or plastics fall under 9404.21, while mattresses of other materials are under 9404.29. The Tribunal reasoned that the absence of "whether or not covered" in 9404.29 doesn't exclude uncovered mattresses. The explanatory note for heading 94.04 also supports this interpretation, encompassing both covered and uncovered mattresses. The Tribunal rejected the argument that only covered mattresses are covered under 9404.29, emphasizing that uncovered mattresses are included.

Manufacturing Process and Eligibility for Exemption:
The respondents argued the goods were sheets, but field verification confirmed they were mattresses, needing only cloth covering for completion. Referring to a Board clarification, the Tribunal acknowledged rubberized coir mattresses as coir industry products but noted the exemption under Notification 115/75-C.E. excluded rubberized coir mattresses during the relevant period. Despite the lack of distinction between covered and uncovered rubberized coir mattresses in the tariff entry and exemption Notification, the Tribunal held that uncovered rubberized coir mattresses are classified under 9404.29 and are not eligible for the coir industry exemption. Consequently, the Tribunal allowed the department's appeal, setting aside the order-in-appeal and restoring the order-in-original.

This detailed analysis by the Tribunal clarifies the classification of goods as rubberized coir mattresses under the relevant tariff headings and the eligibility for exemption under Notification 115/75-C.E. The decision emphasizes the interpretation of statutory provisions and explanatory notes to determine the classification of goods, highlighting the importance of specific language in tariff entries and exemption notifications.