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2005 (1) TMI 110 - SC - Central ExciseWhether Dipped Nylon Tyre Cord Warp Sheet (hereinafter referred to as the "Dipped Tyre Cord Fabric") is a High Tenacity Yarn in terms of Tariff Heading 59.02? - Held that:- The Tribunal was wrong in equating Dipped Tyre Cord Fabric with Rubberised Tyre Cord Fabric. The judgments in Falcon Tyres (1996 (9) TMI 242 - CEGAT, NEW DELHI) and Vikrant Tyres (1996 (11) TMI 424 - CEGAT, NEW DELHI) dealt with classification of Rubberised Tyre Cord Fabric with reference to Chapter Heading 40.05 vis-a-vis Chapter Heading 59.05 (now 59.06). Therefore, the abovementioned prior judgments have no application to the controversy in hand. Lastly, the Tribunal has not examined the scope of HSN Heading 59.02. Moreover, the Adjudicating Authority has not examined the matter in the light of Note-4 to Chapter-59. It has not examined the problem in the context of Note-4 to Section XI and there is no evidence of marketability of Dipped Tyre Cord Fabric. Although, the adjudication order is a well reasoned order, we want the Adjudicating Authority to also examine the matter in the light of the above Note-4 to Chapter 59 and Note-4 to Section XI. We have also given an opportunity to the department to lead evidence, both on the process as well as on marketability. The basic question which the Adjudicating Authority is required to decide is - whether Dipped Tyre Cord Fabric is an independent product in terms of manufacture and marketability? Accordingly, the question of excisability and the questions of classification of Dipped Tyre Cord Fabric are remitted to the Commissioner (Adjudication), Goa for a fresh determination in accordance with law. The controversy regarding classifiability of Rubberised Tyre Cord Fabric is no more res integra. The said product is classifiable under Chapter Heading 59.06. We do not find any infirmity in the impugned judgment of the Tribunal on this point.
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