Friction Cloth [Chapter 40 or 59] - Central Excise - 59/1/87-CX.1

Friction Cloth [Chapter 40 or 59] M.F. (D.R . I) Letter No. 59/1/87-CX.1 Dated 2-6-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Friction Cloth [Chapter 40 or 59] The question of the classification of Friction Cloth under the new Central Excise Tariff has been examined by the Board in consultation with the Chief Chemist. In terms of Chapter Note 3 to Chapter 59 of the Tariff, there are two conditions for classification of the product under sub-heading 5905.10 which applies to rubberised textile fabrics other than those of Heading No. 59.02. It is required under the said Chapter Note that the textile fabrics coated with rubber (i) should weigh below 1500 grams per square metre or (ii) when it weighs more, should contain more that 50% by weight of textile material. In this view of the matter, such friction cloth would fall under Heading 59.05 except for such cloth in which the sheet material weighs more than 15 grams per square metre but contains less than 50% by weight of textile material. This particular category would fall under Chapter 40.05 which covers "plates, sheets, or strips of compounded unvulcanised rubber". Thus view finds support through Explanatory Note 3 under Heading 40.05 of the H.S.N. Accordingly, Friction Cloth weighing more than 1500 grams per square metre and containing more than 50% by weight of unvulcanised rubber compound would fall under Heading No. 40.05 and all other friction cloth would fall under Chapter No. 59.05 of the tariff. The classification of the product may be decided keeping in view of the aforesaid position. 2. By Notification No. 5/87-C.E., dated 15-1-1987 rubberised textile fabrics falling under Heading 59.05 which do not weigh more than 15 grams per square metre and in which rubber predominates by weight have been exempted from duty. While applying this exemption care would have to be taken to ensure that only such Friction Cloth as is classifiable under Heading 59.05 in terms of Note 3(A) to Chapter 59 and also satisfies the description laid down in the notification is extended the benefit of the notification. The matter may be finalised accordingly.