2003 (6) TMI 251

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..... r the bare tyre cord fabrics on which is generally made out of nylon or rayon. 2. The assessee purchased the bare tyre cord fabrics from its manufacturer and sent it to the factory of Ceat, Bhandup under Rule 57F(3) for conversion into dip or rubberised tyre cord. After this was done it utilised the dipped tyre cord rubber fabrics which it received in the manufacture of tyres. The notice issued to it noted that while goods manufactured in a factory and captively consumed therein were exempted from payment of excise duty by notification 67/95 that exemption did not extended to the additional duty of excise leviable under the Additional Duty of Excise (Goods of Special importance) Act, 1957. Therefore, it proposed to recover such duty from .....

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..... specifically provide that heading 59.02, which is for tyre cord fabrics of high density nylon or other polyamides, polyester or viscose rayon, covers tyre cord fabrics whether or not dipped or impregnated with rubber or plastics. The words of heading 59.02 and heading 59.07 of the Harmonised System of Nomenclature are identical with the words respectively of heading 59.02 and 59.06 at the relevant time (now heading 59.07). In such a situation, it is settled law that the assistance of the Explanatory Notes to the Harmonised System of Nomenclature be taken in deciding classification. Therefore, except where, on account of the predominance of textile material classification in heading 40.05, 40.08, or certain specified kinds of rubberised f .....

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..... bber Technology Handbook by Werner Hofmann also describes coating of fabrics by means of calendering. 8. No doubt the departmental officers not being experts in rubber tyre technology could not be expected to understand the meaning and significance of these terms. It is therefore possible to say that from a bare reading of the intimation it could not be concluded that the process involved coating of the fabrics with rubber. However, it cannot be said that the appellant misdeclared and suppressed any information. Even assuming, that the officers were not aware of the significance of the terms they could by simple reference to technical books, have determined what calendering signified. The appellant would have been aware of this fact, it w .....

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