TMI Blog2001 (7) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... uty of excise. 1.3The said tyre cord fabric is processed in their factory for further captive consumption in the manufacture of the excisable products. The process undertaken in their factory are that the Grey/Unprocessed Nylon Tyre Cord Fabric is first dipped in a solution consisting of Resorcinol Formaldehide and Vinyl Pyridine Latex to impart the character of adhering to rubber components. Inasmuch as the nylon tyre cord fabric has the characteristic to shrink at high temperature, the same is subjected to a treatment of heat stretching and relaxing also called normalisation. After the above processes of dipping and passing through are over, the emerging product, which is called 'Dipped Nylon Tyre Cord Fabric' is subjected to rubberisat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional duty of excise is payable. It was submitted that the adjudicating authority has wrongly observed that the said decisions are not applicable to the facts and circumstances of their case and has illegally dismissed the precedent decisions by observing that the contending entry 59.02 was not before the Tribunal. As such submits the ld. counsel that the goods are properly classifiable under Heading 59.06 and as such there was no occasion for the adjudicating authority to reject their claim on classification. 3.Shri V.K. Chaturvedi, ld. SDR has appeared on behalf of the Revenue and reiterated the department's stand. 4.We find that the appellants have strongly relied upon the earlier decisions of the Tribunal holding dipped/rubberised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and are to follow the decisions on classification by the higher forum. Though the Commissioner in the impugned order has not dealt with the implications of the precedent decisions and clarification of the Board, we find that the matter is settled clearly enough about the classification of the goods in dispute which have to be followed by the departmental authorities. We are also of the view that the classification claimed by the assessee will not be determinative of the issue and cannot be made the basis of determining correct classification, especially when there are binding judicial pronouncements and clarification by the Board thereon. Therefore, we allow the appeals by holding that the product is correctly classified under Heading 59.05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of MRF Ltd. v. CCE - 1999 (105) E.L.T. 619 (T) has again held that the dipping/rubberised tyre cord fabrics are properly classifiable under Heading 59.06 of CETA, 1985. Para 8 of the said decision is reproduced below :- We have carefully considered the arguments on"8. both sides. We note that this tribunal is a precedential court. We also note that any clarification or circular issued by the department is not legally binding on us. These are well settled laws and do not need any further reiteration. We find that in the 3 decisions of the CEGAT cited by ld. Sr. Counsel supra, the product classified is same. One of these decisions (the latest) is by the West Regional Bench whereas the earlier are emanating from the IVth Court at Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red decisions, it has been repeatedly held by the Tribunal that the Dipped/Rubberised Tyre Cord Fabric is properly classifiable under Heading 59.05 (now 59.06). No reasons have been shown by the Revenue as to why we should not follow the said decisions of the Co-ordinate Benches. All the decisions have been given in the cases of tyre manufacturers and in respect of the identical product consumed by the assessees captively in the manufacture of the tyres. As such following the ratio of the said decisions we hold that the goods in question are properly classifiable under Heading 59.06 and not under Heading 59.02 as held by the Revenue. Both the sides have agreed that if the Dipped/Rubberised Nylon Tyre Cord Fabrics are classifiable under 59.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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