1998 (11) TMI 225 - AT - Central Excise

Summary

Issues:
Classification of "Journal Lubricating Pads" under Chapter sub-heading 86.07 or 4016.11.

Analysis:
The dispute in this appeal revolves around the classification of "Journal Lubricating Pads" manufactured by the appellants. The appellants argue for classification under Chapter sub-heading 86.07, pertaining to "Parts of railway or tramway locomotives or rolling stock," emphasizing the tailored nature of their goods for railway use. On the other hand, the Department seeks classification under Chapter sub-heading 4016.11, relating to "cellular rubber." The manufacturing process involves Neoprene Sheets forming the core, Cotton Canvas for the outer cover, and Cotton yarn tufting, ultimately used for lubricating axles of railway wagons.

The appellant's representative highlights that their goods are exclusively supplied to the Railways, emphasizing the unique nature of the manufacturing process and the specific utility of the Journal Lubricating Pads for railway purposes. Conversely, the Departmental Representative supports the lower authorities' findings, citing the classification of articles made of unhardened rubber as cellular rubber under sub-heading 4016.11. The Department argues that items resembling floor coverings fall under sub-heading 4016.91, distinct from the nature of the appellant's products.

Upon considering the submissions, the Tribunal notes the appellant's argument regarding the classification of similar cellular rubber products under different headings, such as Latex Foam Mattresses under sub-heading 9404.00. However, the Tribunal finds that the Journal Lubricating Pads, despite being used in railway axles, do not align with the description of "parts of railway or tramway locomotive or rolling stock" under Chapter 86, as per Note 2 to Chapter 86. Consequently, the claim for classification under Chapter Heading 8607.00 is deemed inconsistent with the relevant legal provisions.

In light of the unique circumstances and the need for further examination, the Tribunal remands the appeal to the original adjudicating authority for a fresh assessment of whether the Journal Lubricating Pads could be classified under any Chapter within Section XX. The appeal is allowed by remand, setting aside the previous order and directing a reevaluation of the classification issue.