1998 (3) TMI 244 - AT - Central Excise

Summary

Issues: Classification of Synthetic Rubber Cots under Central Excise Tariff - Whether Cots should be classified under sub-heading 4009.99 or 4016.99.

Detailed Analysis:

Issue 1: Classification of Synthetic Rubber Cots
The appellant, engaged in manufacturing Synthetic Rubber Cots, claimed classification under sub-heading 4009.99 with Nil rate of duty. However, the Assistant Collector classified the Cots under sub-heading 4016.99 with a 15% duty rate. The appellant challenged this classification, citing the decision in the case of Inarco Ltd., which held that Cots are specially made for use in Textile machinery and appliances, falling under sub-heading 8448.00. The respondent argued that Cots, due to various processes carried out on them, should be classified under Heading 40.16 as other articles of Synthetic Rubber. The Tribunal examined the manufacturing process of Cots and concluded that they are essentially Tubes made of Synthetic Rubber, as described in Inarco Ltd., and should be classified under sub-heading 8448.00.

Issue 2: Interpretation of Section Notes
The Tribunal considered the contention that Cots, due to cutting and other processes, should be regarded as distinct products and not Tubes. The respondent relied on the decision in Precision Rubber Industries and Bharat Forge & Press Industries Ltd. to support the classification under Heading 40.16. However, the Tribunal found that the description of Cots as Tubes made from Synthetic Rubber, as per the manufacturing process, aligns with the classification under sub-heading 4009.00. The Tribunal noted that the exclusion clause of Section XVI does not apply since Cots are classified under 4009.00, thereby confirming the classification under Heading 84.48.

Issue 3: Precedent Analysis
The Tribunal distinguished the decision in Anand Motors Ltd., which dealt with articles made of vulcanised rubber falling under Heading 4016, not Tubes under sub-heading 4009. The Tribunal emphasized that the Anand Motors Ltd. decision did not address the specific classification of Tubes and, therefore, was not applicable to the present case. Relying on the Inarco Ltd. decision, the Tribunal concluded that Synthetic Rubber Cots should be classified under sub-heading 8448.00, setting aside the impugned order and allowing the appeal.

In conclusion, the Appellate Tribunal CEGAT, Madras, in the cited judgment, resolved the classification issue of Synthetic Rubber Cots by determining that they should be classified under sub-heading 8448.00 based on their characteristics as Tubes made from Synthetic Rubber, as per the manufacturing process. The Tribunal's analysis included the interpretation of Section Notes and the distinction of relevant precedents to arrive at the final classification decision, setting aside the previous orders and allowing the appeal in favor of the appellant.