TMI Blog2007 (5) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... rised 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 hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctured 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. It is important to note that in the show cause notices issued by the Department, in the present case, the Department had specifically alleged that dipped tyre cord fabrics fell under Chapter Heading 59.02 and not under Chapter Heading 59.05 particularly in view of the fact that the item in question was tyre cord fabric of high tenacity yarn. According to the assessee, the product in question was dipped rubberised textile fabric which came under Chapter Heading 59.06. According to the assessee dipping was the process earlier in point of time to rubberisation of the product and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pter Heading 59.05 and dipped tyre cord fabric classifiable under Heading 59.02 or 59.05, depending on the rubber content, vis-a-vis, the fabric content of the product. In our view since the entire earlier round of litigation has proceeded on the basis of the applicability of the above two judgments in the case of Falcon Tyre Ltd. and Vikrant Tyres Ltd. and since we have drawn a distinction between dipped tyre cord fabric and rubberised tyre cord fabric in the case of MRF Ltd. which judgment came subsequent to the judgment impugned herein (in fact it has been given on the same date i.e. 25-1-2005) the matter needs to be reconsidered by the adjudication Commissioner after examining the process and the procedure followed by the assessee in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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