9911796707
TMI Blog1983 (11) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... Parts and accessories of motor vehicles, not otherwise specified , as urged by the respondents. 2. The facts, in brief, are that the respondents filed a classification list in which they described the subject goods as Latex Foam Sponge falling under Item 16A(1). The classification declared by them was approved by the Department. Later on, the respondents filed a refund claim saying that the goods were more appropriately classifiable under Item 34A. The Assistant Collector upheld the original classification under Item 16A(1) and rejected their claim. The Appellate Collector decided the appeal in favour of the respondents. The Govt. of India, however, tentatively was of the view that the Appellate Collector s order was not correct and so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Rules, 1944 on the ground of estoppel. They argued that the paramount test for central excise classification, as held by the Supreme Court in various judgments, was the commercial understanding in regard to the goods in dispute and that applying this test, since their subject goods were known as scooter seats, motorcycle seats, bus seats etc. Item 34A of the Tariff was more specific for them. For this they relied on the Supreme Court judgment reported at AIR 1976 S.C. 1785 in which the Supreme Court held that the item relating to textile machinery was more specific for pot motors especially designed for spinning frames as against the item relating to electric motors in general. Developing this argument of special design, they stated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t entry was not applicable retrospectively. 4. The Department s representative stated that the issue was whether latex foam sponge moulded to a particular shape ceased to be latex foam sponge. He argued that Item 16A(1) Latex Foam Sponge was a very specific entry for all forms of latex foam sponge and that latex foam sponge moulded to a specific shape did not cease to be covered by it. Secondly, as stated in the impugned show cause notice itself, the respondents were clearing the subject cushion seats in naked form, i.e., without any rexin or leather covering and without any metal plate or strip at the base for fastening the seat to the body of the motor vehicle. In this naked form, the goods were not identifiable or marketable as moto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specially designed for use on motor vehicles and even having specific part numbers were classifiable under Item 52 of the Central Excise Tariff which related to Bolts Nuts and not as unspecified motor vehicle parts under Item 68 (Goods not elsewhere specified) of the Tariff. He summed up his case saying that the subject cushion seats were only latex foam sponge moulded to a particular shape and without any covering or metal strip etc. and hence classifiable under the specific entry 16A(1). He added that the Explanation inserted in Item 16A(1) on 1-3-1983 was only declaratory in nature and the original entry Latex Foam Sponge itself was quite appropriate and specific for the goods. 5. We have carefully considered the matter. A part or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided by us is whether the subject seats could be classified as Latex foam sponge under Item 16A(1). The respondents had been declaring their latex foam sponge pillows, cavity sheeting, chair cushions, cinema seats, scooter seats, bus seats etc. under the broad description Latex Foam Sponge Brand `M.M. Foam . There has, therefore, never been any doubt that all these articles were only different varieties of latex foam sponge and the entry 16A(1) covered them specifically. We were informed by the respondents that their subject seats are moulded as such from latex and are not cut from any bigger piece of latex foam sponge. The Explanation added to Item 16A(1) on 1-3-1983 to include thereunder articles made of latex foam sponge is, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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