Imposition of Additional Excise duty (under Goods of Special Importance Act, 1957) on tyre cord fabrics falling under Chapter 59.02-Clarification-Regarding

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..... 9.02- Clarification-Regarding. Sir, Some doubts have been raised as regard to the classification of processed tyre cord fabric of high tenacity yarn under heading 59.02 or 559.05 (now 59.06) and levy of additional duty in lieu of sales tax (AED) on these fabrics during the period from 16.3.95 to 1.6.98. 2. The matter has been examined by the Board. It is observed that unprocessed tyre cord fabr .....

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..... hich were being classified under 59.02 obtained after dipping and rubberising of unprocessed tyre cord fabrics from 16.3.95 even if the later have discharged AED. A telex was issued on 30.4.96 from F.No.345/11/96-TRU to Commissioners clarifying the position after 1995 Budget specifying the leviability of AED on processed tyre cord fabrics. It was only during the Budget 1998, considering various re .....

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..... nsideration in that circular was not a grey tyre cord fabrics of high tenacity yarn, which was dipped and rubberised, but is was man-made woven fabrics other than tyre cord fabrics. Various alternative classifications of such rubberised man-made fabrics were considered (59.02 was not one of them - because it was not grey tyre cord fabric which was being rubberised and whose classification was in d .....

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..... ics would be classifiable under Heading 40.05/06 or 59.05 (now 59.06). The assessees were claiming the classification under Chapter 40 whereas the Tribunal decided that these are rubberised textile fabrics falling under Heading 59.05. As the question was never put before Tribunal to examine the classification under Heading 59.02, the Board's view to classify the processed tyre cord fabrics under H .....

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