1995 (2) TMI 221 - AT - Central Excise

Summary

Issues: Classification of goods under Central Excise Tariff, Exemption under Notification No. 197/67

Classification of Goods under Central Excise Tariff:
The appeal involved a dispute regarding the classification of 'Rice Mill Rubber Roller' manufactured by the appellants under the Central Excise Tariff. The appellants claimed classification under Tariff Item 16A(3) and exemption from Central Excise duty as per Notification No. 197/67. They argued that the rubber rollers were made of unhardened rubber in the form of piping/tubing, falling under Tariff Item 16A(3). The authorities, however, contended that the rubber rollers, made of both metal and rubber, did not qualify as rubber products under Tariff Item 16A(3) since they were designed as component parts of machinery. The Assistant Collector classified the item under Tariff Item 68, denying the exemption under Notification No. 197/67.

Exemption under Notification No. 197/67:
The issue revolved around whether the rubber rollers for rice mills could be considered as piping and tubing of unhardened vulcanised rubber eligible for exemption under sub-item(3) of Tariff Item 16A. The learned SDR argued that since the rubber rollers did not fall under Tariff Item 16A(3), they were not entitled to the exemption under Notification No. 197/67. Reference was made to a previous Tribunal decision emphasizing that the exemption applied only to pipings and tubings of unhardened vulcanised rubber, not to resultant component parts of machinery articles. The Tribunal upheld the authorities' decision, concluding that the rubber rollers, made with a metal net core and rubber layers, did not qualify as piping and tubing of unhardened vulcanised rubber under Tariff Item 16A(3), thereby denying the exemption.

Analysis:
The Tribunal carefully analyzed the manufacturing process and characteristics of the rubber rollers for rice mills. It noted that the product was a combination of metal net core and rubber layers, indicating that it did not meet the criteria of unhardened vulcanised rubber piping and tubing under Tariff Item 16A(3). The Tribunal concurred with the authorities' interpretation that the rubber rollers were designed as component parts of machinery, not as standalone rubber products falling under the specified tariff item. Additionally, the Tribunal referred to a previous decision to support its conclusion that the exemption under Notification No. 197/67 applied specifically to pipings and tubings of unhardened vulcanised rubber, excluding resultant component parts like the rubber rollers in question. Consequently, the Tribunal upheld the decision of the authorities, dismissing the appeal and denying the exemption to the appellants.