2001 (12) TMI 98 - AT - Central Excise

Summary

Issues involved:
Classification of tyres - Grip Master (GM) and Grip Master Non-Directional (GMND) of various sizes manufactured by the company.

Detailed Analysis:

Issue 1: Classification of tyres under different tariff headings
The case involved the classification of Grip Master (GM) and Grip Master Non-Directional (GMND) tyres of various sizes under different tariff headings. The company classified smaller sizes under T.I. 16-I(i)(b)(i) and larger sizes as off-the-road (OTR) tyres. The Revenue contended that the tyres were designed for off-the-road applications and should be classified accordingly under T.I. 16-III or Chapter Heading No. 4011.91. However, the company argued that the classification should be based on the types of vehicles the tyres are fitted on, not solely on their design or manufacturing process.

Issue 2: Interpretation of tariff entries
The Collector considered the tariff descriptions under T.I. No. 16 and Chapter No. 40.11, noting that tyres were classified based on the vehicles or equipment they were used for. The Collector found that the tyres in question were commonly used on dumpers and trucks in mining and other areas without roads, but also on vehicles registered as motor vehicles. The Collector referred to government orders stating that tyres used on dumpers suitable for public roads were leviable as motor vehicle tyres.

Issue 3: Evidence and submissions
The Revenue relied on product literature, statements by company officials, and technical data to argue for the classification of tyres as off-the-road tyres. They emphasized the design, manufacturing process, and intended applications of the tyres. In contrast, the company presented evidence showing that the tyres were not exclusively used on off-the-road vehicles, including certificates from dealers confirming their usage on trucks and dumpers.

Conclusion:
The Tribunal upheld the classification claimed by the company, rejecting the Revenue's arguments. It found that the actual use of the tyres, rather than just their design or manufacturing process, determined their classification. The Tribunal considered the evidence presented and concluded that the tyres were rightly classified under T.I. 16-I(b)(i) under the old tariff and Chapter Heading 4011.60 of the new tariff. As a result, the appeal filed by the Revenue was rejected, and the impugned order was upheld in favor of the respondents.