1996 (6) TMI 266 - AT - Central Excise

Summary

Issues: Classification of goods under Tariff Heading 4008 or 4016.19 based on specific size and shape.

The judgment revolves around the classification of goods described as wiper rubber, scrapper rubber, skirt rubber, and rubber sheet (vulcanised) under Tariff Heading 4008 or 4016.19. The Revenue sought classification under Heading 4016.19, while the lower appellate authority classified them under Tariff Heading 4008. The key contention was whether the goods, though rectangular in shape, were cut to specific sizes, thereby falling outside the purview of Tariff Heading 4008. The dispute centered on Chapter Note 9C, which stipulates that goods must be uncut or simply cut to rectangular shape for classification under Chapter 4008. The appellant argued that the goods were specifically cut as per customer requirements, making them more appropriately classifiable under Chapter Heading 4016.90 as articles of materials of Heading 4008. The lower authority's reclassification under sub-heading 4016.19 was based on the misunderstanding of Section Note 9 under Chapter 40, which clarifies that goods in rectangular shape fall under Heading 4008 unless cut to a definite shape or further worked.

The lower authority's decision was based on the interpretation of Chapter Note 9, which emphasizes that goods in rectangular shape continue to fall under Heading 4008 unless cut to a definite shape or further worked. The respondent contended that the goods supplied were rectangular in shape and to the required size, without being cut to a particular shape or further worked. It was argued that the goods remained within the purview of Tariff Heading 4008 read with Chapter Note 9, as they were supplied in the dimensions ordered, without any additional shaping. The Tribunal agreed with the lower authority's reasoning, emphasizing that as long as the goods maintained a rectangular shape and were not cut to a definite shape or further worked, they would be classified under Heading 4008. The Tribunal dismissed the Revenue's plea, affirming the sustainability of the lower authority's order in law.

The judgment also addressed a cross-objection filed, which was dismissed as misconceived in law. The Tribunal upheld the lower authority's classification of the goods under Tariff Heading 4008, emphasizing that the specific sizes to which the goods were cut did not alter their basic character as long as they remained in a rectangular shape. The decision highlighted the significance of Chapter Note 9 in determining the classification of goods under the relevant tariff headings, ultimately dismissing the appeal and affirming the lower authority's order.