9911796707
TMI Blog2000 (10) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... -98 of the Schedule to the Central Excise Tariff Act or under Sub-headings 4016.99 and 4006.90 respectively as claimed by the Appellants. 2.Shri V. Lakshmikumaran, learned Advocate explained the process of manufacture as under :- Tyre cord fabric is coated, clicked into widths and chopped into small pieces, sizes as per specifications ; the small pieces are assembled; a minimum of two layers (which may go up to eight) of cord fabric are placed one over the other in criss-cross fashion; top and floater gum and layers of cord fabric are built into one unit which is covered with top and floater gum and is clicked to flower shape with die; at this stage an unvulcanised patch emerges. The whole structure is then placed in a specially designed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Counsel, further, submitted that criss-cross patch is not a plate sheet or strip of rubber and as such it cannot be classified under Sub-heading 4008.21; that the Tribunal in Madras Rubber Factory v. CCE, Madras, 1987 (31) E.L.T. 71 has held that the product is not covered by Item 16A(2) of the erstwhile Central Excise Tariff which covers plate, sheets and strips of rubber. He also mentioned that according to Revenue, HSN Explanatory Notes below Heading 40.16 (page 599) indicates that the Heading covers patches used for repairing inner tubes and, therefore, patches used for repairing tyres were not covered under the said sub-heading; that HSN Explanatory Notes merely indicate that Heading 40.16 includes the products mentioned ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding square) (heading 40.14, 40.15 or 40.16)." 5. Finally, he submitted that the classification of indentical rubber patches was being done by the department under Sub-heading 4016.99. In support, he relied upon the order-in-original dated 29-11-96 and order-in-original dated 19-12-91 passed by the Assistant Commissioner, Coimbatore and Dindigul. Finally, the learned Advocate submitted that no penalty is imposable since they had not violated any of the provisions of the Rules or the Act; that even there is no such an averment in the show cause notice since all the assessments had been finalised up to April, 1996 ; that this is only a matter of change in the opinion of the Department and change in assessment on issue of classification and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ometric shape, uncut or simply cut to rectangular (including square) shape and the impugned product has not been further worked. 7.We have considered the submissions of both the sides. Main rival Headings of the Central Excise Tariff reads as under :- 40.08 Plates, blocks, sheets, strip, rods, and profile shapes, of vulcanised rubber other than hard rubber - - of non-cellular rubber : 4008. 21 -- Plates, sheets and strip, for resoling or repairing or retreading rubber tyres. 40.16 Other Articles of vulcanised rubber other than hard rubber - Articles of materials of heading No. 40.08: 4016.11 -- of cellular Rubber 4016.19 -- Other - Other : 4016.91 Floor coverings and mates, erasers, gaskets, washers and other seals, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to the present matter as there was no Note 9 in respect of Tariff Item 16A of the erstwhile Central Excise Tariff and in absence of which the product was classified under Residuary Tariff Item 68 (Goods not elsewhere specified). We, therefore, find no reason to interfere with the findings of the Commissioner (Appeals) regarding classification of criss-cross patches of vulcanised rubber manufactured by the Appellants and we hold that the product is classifiable under Sub-heading 4008.21 of CETA (Now 4008.22) and not under Residuary Sub-heading 4016.99 of CETA. 9. We, however, agree with the learrned Advocate for the Appellants that no penalty is imposable under Rule 173Q of the Central Excise Rules read with Section 11AC of the Act as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
