9911796707
TMI Blog1989 (12) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... oods were normally dutiable under tariff Item No. 16A (2). However, the assessee claimed exemption from duty under Notification No. 71 of 1968 dated 1-4-1968. By this notification under ' [iii][Section 8 of the Act,] the Central Government exempted "all rubber products, in the form of plates, sheets and strips unhardened, whether vulcanised or not, and whether combined with any textile material or otherwise (other than the products which are made either wholly or partly of rubber and which are used for the resoling or retreading of tyres, including the products commonly known as tread rubber, camel back, cushion compound, cushion gum, tread gum and tread packing strips) falling under sub-item (2) of this item, from the whole of the du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revision petition by its order dated 21-5-1974. The Government referred to the fact that the notification of exemption specifically excluded cushion compound, cushion gum and tread gum and observed that, in view of this, cushion repair compound and tread repair compound would also be assessable to duty under Item No. 16A. So far as cover compound was concerned, it was observed that its composition was such that its use for repair of conveyor belts was indistinguishable from the other use of resoling of tyres. The present appeal has been preferred from the order of the Central Government. 2. On behalf of the appellant it is pointed out that the whole purpose of the exemption notification was to exclude products which were used for the reso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected to a concessional rate of duty while other rubber products falling under Item 16A were granted an exemption from the levy of duty. In the context of that notification, a question arose as to whether rubber products which are capable of being used for retreading or resoling of tyres but are only used for repairs would attract duty or not. The position was clarified by the Central Board of Excise and Customs in its circular No. Rubber 1/66, dated 7-2-1966. The relevant part of the circular reads as follows :- "2. Those rubber products which are not 'latex foam sponge' may be excisable under the said tariff Item No. 16A but would not attract Central Excise duty unless commonly known as per description given in Column 2 against S. No. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not attract duty. 6. Pending cases regarding assessment of rubber products may be finalised accordingly". Learned counsel submits that the above interpretation is equally applicable in the context of Notification No. 71 of 1968. 4. We are of opinion that the appellant's contention is well founded. The notification of 1978 only reproduces with some modifications the notification of 1964; however, the broad purport of both the notifications is to exempt rubber products other than those which are commonly sold under certain descriptions and are used for the resoling or retreading of tyres. The circular of 1966, which can be considered as a contemporaneous exposition of the understanding of the Government while issuing the exemption not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
