Central Excise - Duty on Air bag, Bladder under Chapter 40 - Regarding - Central Excise - 34/89

Central Excise - Duty on Air bag, Bladder under Chapter 40 - Regarding Circular No. 34/89 Dated 9-5-1989 [From F. No. 99/13/89-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Duty on Air bag, Bladder under Chapter 40 - Regarding. Vide Board's letter F. No. 99/16/88-CX.3, dated 8-9-1988 , it was clarified to all concerned that the exemption under Notification No. 50/67-C.E., dated 1-4-1967, as amended, would be available to rubber products falling under Chapter 40 provided all the other conditions of the said Notification are satisfied. However, it appears that the Central Excise authorities are denying exemption to air bags and bladders of rubber captively consumed in the manufacture or new tyres simply because they are confused as to what should be the proper classification of such goods and without explaining to the assessees, with reasons, in writing as to why they would not be entitled to the said exemption. 2. Air bags and bladders of rubber used in the manufacture of new tyres would appear to be appropriately classifiable under heading No.40.16 as 'inflatable articles' of vulcanised rubber other than hardened rubber. Under the corresponding HSN heading No. 40.16 also, there is reference to inflatable articles of vulcanised rubber other than hardened rubber. Such goods would also not appear to be covered under any of the Chapters mentioned in the (exclusion) Note 2 of Chapter 40, even with reference to HSN. Such goods would also not appear to be classifiable in the category of travel goods under Chapter 42 even with reference to HSN. So, the goods in question would appear to be covered under Chapter 40 and entitled to the benefits of Notification No. 50/67-C.E., dated 1-4-1967, as amended, subject to fulfilment of all other conditions stipulated in the said Notification.