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2007 (5) TMI 246 - SC - Central ExciseWhether "dipped rubberised tyre cord fabric manufactured and used captively by the assessee has been wrongly classified under Chapter Heading 59.05 (now CH 59.06) of CETA instead of Chapter Heading No. 59.02? Held that:- The matter needs to be reconsidered by the adjudication Commissioner after examining the process and the procedure followed by the assessee in the manufacture of the product which the assessee calls as Dipped rubberised tyre cord fabric. We make it clear that if the Department comes to the conclusion after examining the process that the product is a rubberised tyre cord fabric then the same shall be classifiable under Chapter Heading 59.05 as held by this Court in the case of MRF Ltd.[2005 (1) TMI 110 - SUPREME COURT OF INDIA]. However, if the product remains dipped tyre cord fabric then the Department has to give a finding both on marketability as well as on the manufacture of the product and decide the matter accordingly in the light of the judgment of this Court in MRF Ltd. Lastly the Department will consider also as to whether in the present case the assessee has made use of the fabric of high tenacity yarn and also proceed to decide the points raised expressly in the show cause notice keeping in mind the contention of the assessee that even after rubberisation, the fabric remains of high tenacity yarn of nylon and according to the assessee the effect of rubberisation has nothing to do with the high tenacity yarn and that once the product becomes a rubberised tyre cord fabric then it will fall under Heading 59.05 and not in 59.02. Appeal allowed.
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