1997 (9) TMI 344 - AT - Central Excise

Eligible to exemption under Notification No. 62/86-C.E. as amended by Notification No. 104/86-C.E.

Summary

Issues:
The classification of cycle tyre bead ring under Tariff Heading 7308.90 and the applicability of Notification 62/86 as amended by Notification No. 104/86 for duty exemption.

Classification Issue:
The respondents filed a classification list for cycle tyre bead ring under Tariff Heading 7308.90. The dispute centered around whether the product falls within the scope of Notification 62/86 as amended by Notification No. 104/86 for duty exemption. The lower appellate authority found merit in the appellant's case, stating that the bead ring is an essential part of the tyre, making it a part of the bicycle or cycle rickshaw. The authority concluded that the product should benefit from the duty exemption granted to items used as part of bicycles or cycle rickshaws under the said Notifications. The Revenue contended that the bead ring is not a part and accessory of bicycles as per the Notification, emphasizing that it is embedded in the tyre and not visible to the naked eye. However, the Tribunal held that since the bead ring is used in the tyre, which is an essential part of the bicycle or cycle rickshaw, it qualifies as an essential part of the whole. The Tribunal rejected the Revenue's appeal, affirming the lower authority's decision.

In summary, the Appellate Tribunal CEGAT, CALCUTTA addressed the issue of classifying the cycle tyre bead ring under Tariff Heading 7308.90 and the applicability of Notification 62/86 as amended by Notification No. 104/86 for duty exemption. The Tribunal upheld the lower appellate authority's decision, emphasizing that the bead ring, being an essential part of the tyre, qualifies as a part of the bicycle or cycle rickshaw. The Tribunal rejected the Revenue's appeal, stating that a part of a part is a part of the whole, and hence, the bead ring is eligible for the duty exemption under the said Notifications.