9911796707
TMI Blog1993 (6) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... on the goods cleared without payment of Central Excise Duty during the period 4-9-1987 to 23-6-1988. He has further ordered for confiscation of 540 litres of rubber solution valued at Rs. 7,000/- and as the same had been provisionally released, he therefore, ordered for imposition of fine of Rs. 1,000/- and also ordered for imposition of fine of Rs. 500/- on M/s. Namaste Leather Garments (P) Ltd. (who have preferred appeal in E/1410/89 on this portion of the order). A penalty of Rs. 12,000/- has also been imposed on the appellant under Rule 9(2)/52A/173Q(1)/226 of Central Excise Rules/ 1944. The show cause notice dated 15-7-1988 alleges that the appellant M/s. Namaste Paints (P) Ltd. had contravened the provisions of Section 6 of the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Leather Adhesive with the use of Natural Rubber in the proportion of 4%, Industrial Solvent (SBPS) 95% Dentrite l/2%, Arabic Gum and Compher l/2% in a proportion of 1 kg. It is their contention that the product Rubber based or Dentrite based Adhesive/solution is nothing but prepared glues or other prepared Adhesives not elsewhere specified or included in the Central Excise Tariff and it is correctly classifiable under sub-heading 3506.00 of Central Excise Tariff 1988-89 and not under sub-heading 4005 of Central Excise Tariff as alleged by the department. They contend that it is not an article of Rubber at all but is only a glue or an adhesive. They relied heavily on the ruling rendered in the case of Elgi Polytex Ltd. v. Collector of Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court as reported in 1989 (43) E.L.T. A130. There is no difference in the process of manufacture in this case and in the reported citation and this ruling is further confirmed in another case of Collector of Central Excise v. MRF Ltd. as reported in 1990 (50) E.L.T. 604 (Tri.) = 1990 (29) ECC 315. 5. On the other ld. JDR contended that there is no vulcanising agent in the product and hence sub-heading 35.06 is ruled out. The product is a Rubber solution and hence clearly falls under sub-heading 40.05. Explanatory notes of HSN under Heading 40.05 also describes products of this type. He also referred to the ruling rendered in the case of Collector of Central Excise v. Adhinesh Rubber as rendered in order Nos. 76-77/90-C dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es also. There is no reference anywhere in the notes that for prepared glues there has to be a presence of vulcanising agent. Chapter 40 deals with Rubber and Articles thereof. Note 3 of the Chapter 40 reads In heading Nos. 40.02, 40.03 and 40.05 the expression Primary forms applies only to liquids and pastes (including latex, whether or not prevulcanised and other dispensions and solutions), and blocks of irregular shape, lumps, bales, powders, granules, crumbs and similar bulk forms . Note 9 reads In Heading Nos. 40.01, 40.02, 40.03, 40.05 and 40.08, the expressions plates , sheets and strips apply only to plates, sheets and strips and to blocks of regular geometric shape, uncut or simply cut to rectangular (including squ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -and alkali-resistant equipment, combs. As dust, filler for low-cost rubber products. The definition of Adhesive-rubber based appears at page 21 of the said Dictionary which is reproduced herein below : Adhesive, rubber-based : (Cement, rubber) (1) A solution of natural or synthetic rubber in a suitable organic solvent, without sulfur or other curing agent; (2) a mixture of rubber (often reclaimed), filler, and tackifier (pine tar, liquid asphalt) applied to fabric backing (pressure-sensitive friction tape); (3) a room-temperature curing rubber-solvent-curative mixture, often made up in two parts, which are blended just before use; (4) rubber latex, especially for on-the-job repairing, such as conveyor belts; (5) silicone rubber ceme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the present case. The ld. JDR argued that vulcanising agent is a must in a adhesive for classifying under Chapter 35. The definition of Adhesive - Rubber based extracted Supra shows that it can be prepared without sulfur also, which is a vulcanising agent. Vulcanising agents are required as a must for the process of vulcanisation but it is not necessary for preparation of adhesives rubber based or for glues as per the definitions extracted above and also by reading the definition of vulcanisation appearing at page 1091 of the said dictionary: Vulcanisation: A physicochemical change resulting from cross-linking of the unsaturated hydrocarbon chain of polyisoprene (rubber) with sulfur, usually with application of heat. The precise ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
