1992 (3) TMI 227 - AT - Central Excise

Summary

Issues:
Classification of rubberised cotton tapes under Central Excise Tariff, applicability of Notification No. 252/82, classification of rubber coated fabric, marketability of intermediate products, appeal against Collector of Central Excise (Appeals) order.

Detailed Analysis:

1. Classification of Rubberised Cotton Tapes:
The case involved the classification of rubberised cotton tapes under the Central Excise Tariff. The Assistant Collector had classified both rubberised cloth and tape under Tariff Item 19(I)(b). However, the Collector (Appeals) disagreed, stating that rubberised or friction tapes did not fall under Tariff Item 19. The appellant argued that the Collector (Appeals) had overlooked the classification issue of such fabrics.

2. Applicability of Notification No. 252/82:
The Collector (Appeals) mentioned that rubberised tapes below 15 cms. in width might be exempt from duty under Notification No. 252/82, dated 8-11-1982. The appellant contended that this notification applied only to cotton fabrics and not rubberised cotton fabrics, challenging the Collector (Appeals) decision.

3. Classification of Rubber Coated Fabric:
The respondents argued that the rubber coated fabric, an intermediate product in the production of rubberised cotton tape, should not be classified as 'rubberised fabric' since it was not vulcanised. They relied on a Bombay High Court decision and a clarification from the Ministry of Finance to support their position.

4. Marketability of Intermediate Products:
The Tribunal examined whether rubberised cotton tape or friction tape, as well as the rubber-coated cotton fabric produced as an intermediate product, were dutiable under Tariff Item 19(I)(b) of the Central Excise Tariff. The Tribunal considered the marketability of the intermediate products in determining their dutiability.

5. Legal Precedents and Decision:
Referring to a Bombay High Court judgment regarding unvulcanised fabric and marketability, the Tribunal held that neither the rubber-coated fabrics nor the friction tapes could be deemed dutiable under Item No. 19 of the Central Excise Tariff. The Tribunal concluded that since these products were not specified elsewhere in the tariff, they were correctly classifiable under Item 68. Consequently, the appeal was dismissed, and the cross-objections filed by the respondents were also disposed of.

In conclusion, the Tribunal's decision clarified the classification of rubberised cotton tapes, applicability of notifications, the marketability of intermediate products, and upheld the classification of the products under the Central Excise Tariff.