1996 (10) TMI 211 - AT - Central Excise

Summary

Issues:
1. Classification of caulking compound under chapter sub-heading 2715 or 3214.
2. Classification of joint filler with bitumen product under chapter sub-heading 4410.90.

Analysis:
The appeal involved the classification of the caulking compound and joint filler with bitumen product. The appellants contended that the caulking compound should be classified under chapter sub-heading 2715, while the department argued for classification under 3214. Additionally, the issue of whether the joint filler with bitumen product was a manufactured product and its classification under chapter sub-heading 4410.90 was raised.

The appellants, as manufacturers of the caulking compound and expansion joint filler bitumen impregnated, claimed that the caulking compound should be classified under chapter sub-heading 2715. They argued that no manufacturing process was involved in the production of the expansion joint filler bitumen. The department, however, asserted that the caulking compound fell under chapter Heading 3214 and manufacturing was involved in the production of the expansion joint filler, classifying it under chapter sub-heading 3410.10.

The consultant for the appellants referred to the Assistant Collector's order and technical opinions to support the classification of the caulking compound under chapter sub-heading 2715. They also argued for the benefit of Notification No. 76/86 based on the asphalt mix nature of the product. On the issue of the joint filler with bitumen product, it was highlighted that the department did not appeal the finding that no manufacturing process was involved.

The JDR for the respondents contended that there was a specific entry for caulking compound under chapter Heading 3214, and thus, it should be classified accordingly. They argued against the applicability of Notification No. 76/86 to the caulking compound and did not press the issue regarding the manufacturing process of the expansion joint filler bitumen.

After hearing both sides, the Tribunal focused on the eligibility of the caulking compound for exemption under Notification No. 76/86. They found that the product was asphalt-based, supported by test reports and technical literature. Consequently, the Tribunal held that the caulking compound was eligible for the benefit of the notification, as asphalt mix was included in the schedule. Therefore, the appeal was disposed of in favor of the appellants, granting them the benefit of the exemption under Notification No. 76/86-C.E.