2013 (4) TMI 504 - AT - Central Excise

Classification Under Central Excise Act - Held that - We find that the Hon ble Supreme Court in the case of CCE, Goa and Chennai vs. MRF Ltd. (2005 (1) TMI 110 - SUPREME COURT OF INDIA) held that the rubberized tyre cord fabric is classifiable under Chapter Heading 59.06 of the Tariff. - The controversy regarding classifiability of Rubberised Tyre Cord Fabric is no more res integra. The said product is classifiable under Chapter Heading 59.06. We do not find any infirmity in the impugned judgment of the Tribunal on this point - The appeal is dismissed.

Summary

Issues:
Classification of rubberized tyre cord fabric under Heading 59.06 vs. Heading 59.02 of the Tariff.

Analysis:

Issue 1: Classification of rubberized tyre cord fabric
The Revenue appealed against the classification of rubberized tyre cord fabric under Heading 59.06 of the Tariff, contending it should be classified under Heading 59.02 instead. The Tribunal referred to a previous decision in the case of CCE, Bangalore vs. Vikrant Tyres Ltd., where it was established that Heading 5902 specifically covers tyre cord fabric, including those dipped or impregnated with rubber or plastics. The Tribunal noted that processes like rubber coating and calendaring, which are subsequent to the manufacture of tyre cord fabrics, are not part of the manufacturing process of tyre cord fabrics. The processes are instead related to the manufacture of tyres or other products. Therefore, tyre cord fabrics subjected to these processes should not fall under Heading 5902. The Tribunal relied on the HSN notes to support this interpretation.

Issue 2: Precedent set by the Supreme Court
The Tribunal also referenced a judgment by the Hon'ble Supreme Court in the case of CCE, Goa and Chennai vs. MRF Ltd., where it was held that rubberized tyre cord fabric is classifiable under Chapter Heading 59.06 of the Tariff. The Supreme Court clarified that the classification of rubberized tyre cord fabric under Heading 59.06 is well-established and not a matter of dispute. The Tribunal concurred with the Supreme Court's decision and found no fault in the impugned order.

Conclusion
Based on the precedent set by the Tribunal's previous decision and the confirmation by the Hon'ble Supreme Court, the Tribunal dismissed the Revenue's appeal against the classification of rubberized tyre cord fabric under Heading 59.06 of the Tariff. The Tribunal upheld the classification and found no error in the impugned order.