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TMI Blog2006 (9) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Revenue. 2. The appellants are the manufacturers of Latex Rubber Thread, an excisable commodity. They had cleared the following goods by classifying them under chapter heading 4001.00:- (1) Natural Rubber Latex - Skim/Skim Latex (2) Natural Rubber Waste - Pit; (3) Natural Rubber Latex - clay; and (4) Wet Rubber waste The above goods have emerged during the process of Centrifuging the Natural Rubber Latex. The Revenue proceeded against the appellants demanding Central Excise duty of Rs. 16,39,724/- by classifying the said goods under Chapter heading 40.04. The Original authority dropped the proceedings vide his order No. 20/2003 dated 30-4-2003. The Revenue filed an appeal before the Commissioner (Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded. Due to high quality standards set by the appellants, the appellants have not used the goods. But the goods remain as rubber and the same can be used for the same purpose, if the quality standards are not insisted upon. (v) The heading 40.04 covers only waste parings and scrap of rubber and not by-products like skim rubber and pit rubber. As the subject goods are of no use for them, they described as natural rubber waste - skim and natural rubber waste - pit in the invoices. For this reason alone the impugned goods do not merit to be classified as waste and scrap of rubber under heading 40.04 of CETA as held by the Commissioner. (vi) As per HSN, the skim rubber gets classified only under chapter heading 40.0. While detailing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment has placed reliance in the case of M/s. Bata India Ltd. v. CCE, Calcutta [1999 (108) E.L.T. 120] to substantiate that the impugned goods are waste and scrap. It was urged that the above case is distinguishable in that case, the question was about the classification of waste, parings and scrap of rubber arising in the process of manufacture of rubber sheets/foot wear at the appellant s factory. On the contrary in the instant case, the dispute is about the classification of rubber latex of lesser concentration emanating out of the centrifugal process undertaken on Natural rubber latex. 6. As the Commissioner (Appeals) has only partially allowed the Revenue s appeal, the Revenue is aggrieved over the impugned order on the following gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usable as such, has to be classified under 4004.00. The item is a waste as far as the manufacturer is concerned. (iv) The item has lost its character as natural rubber in-as-much as the percentage of rubber content is much lower than 15% in comparison to 30% to 40% of natural rubber and hence it can only be considered as waste falling under 4004.00. The fact is applicable to all the four types of Rubber waters referred. (v) Since the classification list has not been approved by the department this is a case of wilful misdeclaration and so extended period under Section 11A can be clearly invoked and also penalty under Section 11AC can be imposed. 7. We have gone through the records of the case carefully. The issue before us is the cor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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