9911796707
TMI Blog2007 (5) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... od August 1996 to May 1998. 3. M/s. J.K. Tyre and Industries Ltd. (assessee) are engaged in the manufacture of vehicle tyres as also calendered fabric by using dipped rubberised tyre cord fabric of high tenacity yarn of nylon. Since the product was used captively it was exempted from payment of excise duty under Notification No. 67/95 dated 16-3-1995. However, additional duty of excise was leviable on dipped rubberised tyre cord fabric, according to the Department, under additional duties of Excise Act 1957. Therefore, show cause notices were issued on the assessee (respondent No. 1 herein) in which it was alleged by the Department that "dipped rubberised tyre cord fabric manufactured and used captively by the assessee has been wrongly cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce we are of the view that in the present matter the adjudication took place at the time when there were two judgment of the Tribunal in Falcon Tyres Ltd. v. Collector of Central Excise, Bangalore, 1996 (88) E.L.T. 450 and Vikrant Tyres Ltd. v. Collector of Central Excise, Bangalore, 1997 (90) E.L.T. 178. The aforesaid two judgments of the Tribunal have been discussed in the judgment of this Court in the case of Commissioner of Central Excise, Goa and Chennai v. MRF Ltd. reported in 2005 (180) E.L.T. 145 (S.C.) in which this Court has drawn a distinction between rubberised tyre cord fabric classifiably under Chapter Heading 59.05 and dipped tyre cord fabric classifiable under Heading 59.02 or 59.05, depending on the rubber content, vis-a-vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the assessee that even after rubberisation, the fabric remains of high tenacity yarn of nylon and according to the assessee the effect of rubberisation has nothing to do with the high tenacity yarn and that once the product becomes a rubberised tyre cord fabric then it will fall under Heading 59.05 and not in 59.02. We have reproduced some of the arguments advanced before us in the matter of classification. However, we make it clear that it would be open to the assessee as well as the Department to examine every aspect of the matter and all arguments on merits on both sides are accordingly kept open. 6. We also make it clear that we do not wish to express any opinion on the merits of the case. 7. Accordingly the appeals are allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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