Rubber solution or vulcanising solution classifiable under Heading 40.05 or Sub-heading 4005.00 eligible for exemption under Notification No. 175/86 - Central Excise - 32/90-CX.3

Rubber solution or vulcanising solution classifiable under Heading 40.05 or Sub-heading 4005.00 eligible for exemption under Notification No. 175/86 Circular No. 32/90-CX.3 Dated 28-6-1990 [From F. No. 99/12/90-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Exemption in terms of Notification No. 175/86, as amended to goods falling under Heading No.40.05 - Clarification regarding. Doubts have been expressed regarding the exact scope of Notification No. 113/89, dated 31-3-1989, which further amended Notification No. 175/86 dated 1-3-1986, in the context of small scale exemption in respect of goods falling under Heading No. 40.05. The Notification No.113/89, dated 31-3-1989 had, inter alia, omitted the sub-heading No. 4005.00 in Item No. (iii) in Sl. No. 4 of the Annexure to the Notification No. 175/86. Though sub-heading No. 4005.00 was deleted vide Notification referred to above, the Heading No. 40.05 still figured in the list of goods which were excluded from the purview of exemption, vide Item No. (ii) in Sl. No. 4 of the Annexure to the Notification. It is in this context that doubts have been expressed as to whether the exemption in terms of Notification No. 175/86 ceased to be available to all goods falling under Heading No. 40.05. The matter has been examined in the Board's office. By Notification No. 96/89, dated 1-3-1989 'rubber solution or vulcanising solution' classifiable under Heading No. 40.05 has been included in the list of goods in respect of which the exemption was available, vide S.No. 3 of the Annexure to the Notification No. 175/86. The amending Notification No. 96/89 dated 1-3-1989 has further included Heading No. 40.05 in the list of goods in respect of which the exemption was not available vide Item No.(ii) in Sl. No.4 of the Annexure to the Notification No. 175/86. The mention of sub-heading No. 4005.00 in Item No.(iii) in Sl.No. 4 of the Annexure to the Notification, prior to its omission by amending Notification No. 113/89 dated 31-3-1989, ceased to have relevance after the inclusion of Heading No. 40.05 in Item No.(ii) in Sl. No. 4 of the aforementioned Annexure. The Notification No. 175/86, in its present form, excludes, inter alia, all goods falling under Heading No. 40.05. However, such an exclusion is not applicable in respect of 'rubber solution or vulcanised solution' which is individually specified in Sl. No. 3 of the Annexure to the Notification. Therefore, the correct legal position would be that the small scale exemption is limited only to 'rubber solution or vulcanising solution'. Such an exemption is not available to any other goods falling under Heading No. 40.05 of CET. Heading 40.05 or sub-heading No. 4005.00 covers compounded rubber, unvulcanised, in primary forms or in plates, sheets or strips. Thus, as per the Notification No. 175/86, as amended, rubber solution or vulcanising solution alone classifiable under Heading No. 40.05 or sub-heading No. 4005.00 is entitled to exemption. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. All pending assessments may be finalised on the above basis.