1995 (11) TMI 233 - AT - Central Excise

Summary

Issues: Classification of vulcanising rubber solution under Central Excise Tariff Act, 1985.

Upon reviewing the judgment delivered by the Appellate Tribunal CEGAT, New Delhi, it is evident that the case involved eight appeals filed by the Revenue against a common order-in-appeal passed by the Collector, Central Excise (Appeals), Madras. The primary issue at hand was the classification of the vulcanising rubber solution. The Collector (Appeals) had classified the item under sub-heading 3501.90 before 10-2-1987 and under 3606.00 from 10-2-1987 onwards.

During the proceedings, it was noted that the case of Elgi Polytex Ltd. v. Collector of Central Excise was referred to, where it was held that rubber cement used as an adhesive in retreading of tires is classifiable under Heading 35.06 from 10-2-1987 and under 35.01 before that date. The Tribunal had relied on the Harmonized Commodity Description and Coding System to determine the classification. The Heading 35.06 covered glues and other prepared adhesives not elsewhere specified, including products suitable for use as adhesives, which aligned with the composition of the subject product containing rubber compound, solvent, sulphur, carbon black, stearic acid, zinc oxide, fillers, and accessors. It was concluded that the product was correctly classified as a glue under Chapter 35 of the Central Excise Tariff Schedule.

Based on the precedent set by the decision in Elgi Polytex Ltd., the Appellate Tribunal upheld the impugned order-in-appeal and rejected the eight appeals filed by the Revenue. The respondents, M/s. Treads & Industrial Rubber Extrusions, were granted consequential relief in accordance with the law.