1988 (2) TMI 171 - AT - Central Excise

Summary

Issues: Classification of Rubber Cement or Black Vulcanising Cement under the Central Excise Tariff Act, 1985.

Detailed Analysis:

1. Classification Dispute: The appeal challenges the Order-in-Appeal confirming the classification of Rubber Cement under Heading No. 40.05 of the Central Excise Tariff Act. The chemical composition of the product is crucial for determining the correct classification. The appellants submitted different classification lists, leading to a legal question of classification under the tariff schedule.

2. Chemical Composition: The product consists of natural rubber, sulphur, solvent, and other components. The manufacturing process involves dissolving rubber in a solvent, which is used for tyre retreading. The chemical composition variations in the classification lists submitted by the appellants were considered in the classification dispute.

3. Legal Arguments: Initially, a plea was made that the manufacturing process did not amount to excisable manufacture. However, this argument was later withdrawn. The appellants claimed alternative classifications under different headings based on the chemical composition and properties of the product.

4. Classification Analysis: The dispute revolved around the appropriate heading for classification. The department argued for Heading No. 40.05, while the appellants contended for Chapter 35 headings based on the adhesive properties of the product. The classification of raw materials supplied by another entity was also discussed but deemed irrelevant to the classification of the final product.

5. Adhesive Classification: The Tribunal analyzed the product's composition and properties, concluding that it aligns with the characteristics of rubber-based adhesives. Reference was made to authoritative sources and explanatory notes under the Harmonized Commodity Description and Coding System to support the classification of the product as glue or adhesive under Chapter 35 of the Central Excise Tariff Schedule.

6. Judgment: The Tribunal allowed the appeal, setting aside the lower authorities' orders. The Rubber Cement was classified under Heading No. 35.01 prior to 10-2-1987 and under Heading No. 35.06 from 10-2-1987 onwards. The decision was based on the product's adhesive properties and composition, aligning with the descriptions under Chapter 35 headings in the Central Excise Tariff Schedule.