TMI Blog2016 (11) TMI 1583X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Notification issued for the purpose of sechedule entry C-54, therefore it cannot be covered by the scope of that entry. Hence, it is to be covered by the residuary schedule entry. The Microcellular Rubber Tubes (Armaflex) covered under Central Excise Tariff No. 4009 1100 is used as insulating material.lt is for ducting and piping application for maintaining the required temperatures inside the refrigerating system. This insulation material slows down the rate of heat transfer.lt is not used to transport any material like liquid or gases.lt has different function. Hence in common parlance also it can not be identified as tube. The people conversant with it, identifies the product as insulating material and uses it accordingly.Hence.the alternate submission being goods, covered by Schedule entry C-72 also not tenable. Application disposed off. - ARA MUMBAI 16/2016-17-Disp.Reg.No. 07 - - - Dated:- 10-11-2016 - SHRI. RATHOD A. H. (CHAIRMAN) AND SANGLE S.G. (MEMBER) AND CHAHURE A.A. (MEMBER) Mr. Deepak K. Bapat, Advocate And Mr.Samir Patra (Fainance Controler) , for the applicant. <!--[if !supportLineBreakNewLine]--> <!--[endif]--> ORDER The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or ducting insulation and tubes/sheets are used for piping insulation. 2.5 The use of Armasound Sheets is for the inner surfaces of the ducting to reduce the sound noise by absorption. These sheets are applied to the wall surfaces of the plant and AHU rooms to reduce the sound noise by absorption . The noise hits the open cell acoustic insulation material and gets absorbed and turns into heat energy. 3. The contention of applicant:- 3.1 The applicant stated that, the Microcellular Rubber Sheets (Armaflex) is covered under Central Excise Tarif No. 4008 1110, and hence covered under Schedule Entry C-54 appended to the MVAT Act, 2002 and tax levied accordingly.He futher stated that the Microcellur Rubber Tubes (Armaflex) covered under Central Excise Tariff No. 4009 1100 and Mocrocellur Rubber Sheets (Armasound) covered by Central Excise Tariff No.4008 1190. Are also covered by said notification.However, at present the applicant is charging VAT under residuary entry on sales of Microcellur Rubber Tubes (Armaflex) And Mocrocellur Rubber Sheets (Armasound). 3.2 Mr. Deepak Bapat , Id. Advocate attended and submitted a detailed contention and also argued that the raw ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustrial inputs and packing materials as may be notified from time to time by the State Government in Official Gazette . In pursuance to that the state government has issued the notification for the purpose of schedule entry C-54.Hence, it is necessary to analyse the said notification and to see the impugned products are covered by said notifications or otherwise. 4.2 Whether the product is covered by industrial input notification:- It is relevant to note that dealer has not produced any conclusive and authentic proof to establish CETH No. of the product. To verify the dealer contention as to goods are covered by notification of industrial input being covered by CETH No. 4008 1110, 4009 1100 and 4008 1190, the notification is reproduced as- No.VAT-1505/CR-234/Taxation-1.- specifies the following goods, more particularly described in the Schedule appended hereto, to be the industrial input and packing materials whether sold under a generic name or any brand name or otherwise, for the purpose of the said entry namely :- SCHEDULE The Industrial inputs and packing materials covered from time to time , under the heading or sub-headings, or as the case may be, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown as other , then the interpretation as provided in Note 2 shall apply. 4.3 On analysis of tariff heading and notification and notes issued by state government, it is revealed that- a) If the commodities mentioned in the said notification and the Central Excise Tariff differ in description, then only the commodities described in the said notification are to be considered for the rate of tax of Schedule entry 54. Other commodities, even though they may be covered by corresponding description in the Central Excise Tariff, are not to be considered for inclusion in the said notification. b) If the description in the notification matches fully with the corresponding description in the Central Excise Tariff, then all the commodities covered by the tariff will be covered by the scope of the notification. 4.4. The notification issued specifically state that the goods more particularly described in the notification are only covered by the notification. The word namely is to be interpreted. The namely means 'that is to say . It has restrictive meaning. Since it is exemption notification it is required to be construed strictly. The Apex court in many cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, factual position and application of rules of interpretation, it is observed that- a) The Microcellular Rubber Sheets (Armaflex) is covered by Central Excise Tariff No.4008 1110. This sub-heading finds a place in the Government Notification and hence applicant is charging tax as per Schedule Entry 54 of Schedule 'C' appended to the MVAT Act, 2002. b) The Microcellular Rubber Tubes (Armaflex) is covered by Central Excise Tariff No. 4009 1100. This sub-heading is not covered by the state Government Notification issued for the purpose of schedule entry, C- 54 of MVAT ACT, 2002. c) The Microcellular Rubber Sheets (Armasound) is covered by Central Excise Tariff No. 4008 1190. This sub-heading is not covered by the state Government Notification issued for the purpose of schedule entry, C- 54 of MVAT ACT, 2002. 4.6 The applicant has put forward many arguments in his favour viz. there is no material difference between plates, sheets and strips, the difference is only of form and that all the three products are of microcellular rubber and all the three products are sheets of microcellular rubber. It is also contended that all the three products are capable of bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey are measured by OD and and are used to transport gases or liquids. Pipes are typically also available in large sizes than tubes. Hence, the contention of the applicant that his product can also be termed as pipe and covered by the Schedule Entry relating to Pipes of all varieties including Gl pipes, ductile pipes, PVC pipes and their fittings cannot be accepted. 5.Conclusions:- 5.1 The words employed in the notification and notes appended with it suggest the intention of the Legislature. Only those commodities are to be taxed as per rate of tax of Schedule Entry 54 of MVAT Act, 2002, which are expressly covered in the Notification and those which do not find a place in the said Notification cannot be covered even if they find a place in the Central Excise Tariff headings or sub-headings. 5.2 The Microcellular Rubber Tubes (Armaflex) which is covered by Central Excise Tariff No. 4009 1100. This sub-heading does not appears in the Government Notification issued for the purpose of sechedule entry C-54, therefore it cannot be covered by the scope of that entry.Hence, it is to be covered by the residuary schedule entry. 5.3 Similarly, Microcellular Rubber Sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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