9911796707
TMI Blog1997 (11) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Availability of the benefit of Notification No. 250/86-C.E., dated 11-4-1986 to Rubber Solution (Water based) manufactured by the respondents herein - the classification of this product is not in dispute as the assessees have accepted the department's stand that this product falls for classification under sub-heading 4001.00 of the Schedule to the Central Excise Tariff Act, 1985. The lower Appellate authority has upheld classification of Product No. 1 under sub-heading 3506.00 and has extended the benefit of Notification No. 175/86 and in respect of the second item, he has remanded the matter for verification of the claim of the assessees that no power is used in the manufacture of this item and has held that subject to verificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er covered by the notification in question. However, in view of our finding that the product falls for classification under Heading 3506, automatically the benefit of Notification No. 175/86 is available thereto. 3. As far as product No. 2 is concerned, the contention of the Revenue is that the assessees have not established that no power was used in the manufacture of this product and since the notification is available if no power has been used in its manufacture, the benefit has been wrongly extended. We find from the order of the Collector of Central Excise (Appeals) that he has not straightaway allowed the exemption but has held that the fact whether the product is manufactured without aid of power, is open to verification and thus t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id which consists of an aqueous solution of organic and mineral substances classifiable under Heading 40.01 which includes stabilised or concentrated natural rubber latex also. However, merely adding water or emulsifier does not make any substantial difference and therefore, there is a lot of force in the arguments taken before the lower authorities initially that there was no process of manufacture involved. However, as it happened, this point was not pressed before us and not debated and no orders were passed in this respect, I am inclined to mention it as an abundant precaution before parting so that our order is not treated as an endorsement of the order of the lower authorities in this regard. 5. I may also further mention that the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned in the Tribunal's order relied upon by the Collector, the Tribunal's view has differed from the Board's view and rubber cement or black vulcanising cement used as adhesive for retreading of tyres was hold as not classifiable under Heading 40.05 in terms of the Tribunal's decision in the case of Elgi Polytex Ltd., Coimbatore v. Collector of Central Excise, Coimbatore reported in 1988 (34) E.L.T. 404 (Tribunal) . The A.C. and the departmental authorities have referred to HSN Heading 40.05 but appear to have over-looked the exclusion clauses therein. The Explanatory Note under Heading 40.05 HSN states that this heading also excludes :- (c) Prepared glues and other prepared adhesives consisting of rubber solutions or dispersions with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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