TMI Blog1989 (12) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... using or marketing the products for use, only for repairing tyres and conveyor belts is not controverted. In these circumstances, we are of opinion that the appellant assessee was entitled to exemption under the notification. In one sense, any rubber compound has a composition which theoretically permits it to be used either for repair purposes or for resoling or retreading of tyres. But the assessee's contention is that the product marketed by it has not the physical dimensions or technical properties to be capable of use for retreading or resoling. Also, the notification talks of products "used for" resoling and retreading of tyres and that is not the case here. The notification thus imports a limitation on the exclusion from the exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Central Excise having rejected the claim for exemption and charged the goods in question to duty at 20% (basic) under the tariff item above mentioned, the assessee preferred an appeal to the Collector of Central Excise, West Bengal. The Collector also rejected the claim observing that there was no evidence that the goods in question could not be used for the resoling or retreading of tyres. The assessee thereupon preferred a revision to the Central Government under Section 36 of the Act it then stood. In the revision petition, it was pointed out that tread repair compound and cushion repair compound were primarily meant for and also used as repair material only with reference to the treads and cushions of tyres and that since they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overlooked that while tread rubber, cushion compound and tread gum are all items used for resoling or retreading of tyres, that was not the use to which the articles manufactured by the assessee were put. The statement of the assessee that the goods manufactured by it were employed only for repairing tyres and conveyor belts has not been disbelieved. It is therefore submitted that the Government erred in holding that the goods produced by the assessee are not eligible for the exemption in question. 3. In support of his contention, learned counsel for the appellant relied on two important circumstances. One is that by a Notification No. 27 of 1973 dated 1-3-1973, Notification No. 71 of 1968 was amended and the words '"used for resoling, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... While the scope of the levy on the rubber products thus gets very much restricted, it may so happen that different brand names are given by different manufacture to the same or similar product giving rise to the question whether or not a particular product can be deemed to be commonly known as 'tread rubber', 'camel back', 'cushion compound', 'cushion gum' etc., so as to attract duty. 3. Doubts of the above nature should not in fact arise in view of para 6 to the 1962 Budget instructions. It was made quite explicit therein that 'item is ... fairly comprehensive as to wording but the intention... is to subject only 'latex foam sponge' and the rubber products popularly known as 'tread rubber' or 'camel back' used for the resoling or retread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at that time, it was not intended to deny exemption to rubber products used merely for repair purposes. The notification of 1973 was one in which various amendments were carried out to a series of notifications relating to various items and does not contain anything to suggest that it was only a clarification that was intended to be given and not a prospective amendment of the previous notification. As already mentioned, the fact that the appellant is using or marketing the products for use, only for repairing tyres and conveyor belts is not controverted. In these circumstances, we are of opinion that the appellant assessee was entitled to exemption under the notification. In one sense, any rubber compound has a composition which theoretica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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