2008 (9) TMI 780 - AT - Central Excise

Summary

Issues: Recovery of Basic Excise Duty (BED) and Additional Excise Duty (AED) on 'Rubberised Nylon Tyre Cord Fabrics' (RNTCF) used as input in manufacturing exempted Tyres for Animal Drawn Vehicles.

Summary:
The appeals were filed against Orders-in Appeal u/s 92/2005-CE dated 29-3-2005 and 03/2006-CE dated 9-1-2006 passed by the Commissioner of Central Excise (Appeals), Mangalore. The issue pertained to the recovery of BED and AED on RNTCF used in manufacturing exempted Tyres for Animal Drawn Vehicles. The Adjudicating Authority confirmed the demands, which were later re-quantified by the Commissioner (Appeals) under CH 59.06, restricting the duty liability to BED only. The appellants raised contentions regarding the marketability of RNTCF.

Upon careful consideration, it was found that the excisability and classification of RNTCF had been settled by the Hon'ble Apex Court in the case of MRF Ltd. The Tribunal upheld the classification of RNTCF under Chapter Heading 59.06, as per previous judgments. The Tribunal rejected the appellants' request to keep the issue of marketability open for future cases, stating it was not within their purview to decide on potential future issues. The impugned orders were upheld as the classification of RNTCF under CH 59.06 rendered AED not leviable. The appeals were rejected.

The Tribunal's decision was pronounced in open Court on 19-6-2008.