2002 (9) TMI 642 - AT - Central Excise

Tribunal grants Appeal on compounded rubber benefit under Central Excise Tariff

The Tribunal allowed the Appeal in favor of the Appellant regarding the entitlement to the benefit of Notification No. 74/94-CE on compounded rubber. The ... Rubber - Compounded rubber - Exemption Issues:- Entitlement to benefit of Notification No. 74/94-CE on compounded rubber.Analysis:The Appellant filed an Appeal against the Order-in-Appeal denying the benefit of Notification No. 74/94-C.E. The Appellant argued that the proceedings were related to the approval of their classification list, and the Adjudicating Authority had initially denied the benefit of the notification, which was later set aside by the Commissioner on appeal. The Appellant contended that Notification No. 74/94 exempts rubber products classifiable under 4405.00 of the Central Excise Tariff, citing a previous Tribunal decision in a similar case.The Revenue's contention was that the goods produced by the Appellant at an intermediate stage had irregular shapes, which were then given a regular shape by cutting from the sides. The Revenue argued that due to this process, the Appellant was not entitled to the benefit of the Notification.The key issue in this Appeal was whether the Appellant was entitled to the benefit of Notification No. 74/94-CE on compounded rubber. The goods in question were classifiable under heading 44.05 of the Central Excise Tariff. The Tribunal referred to a previous case involving Kirloskar Batteries Ltd., where it was held that irregular sheets and compounded rubber fell under Heading 4405 of the Central Excise Tariff and were entitled to the benefit of a similar notification. The Tribunal emphasized that the denial of the benefit by the Adjudicator was not upheld, as the irregular shaped compounded rubber sheets were considered intermediates and parts of the final product. The Tribunal concluded that the demands as determined could not be sustained, and the Appeal was allowed based on the precedent set by the previous decision.In light of the Tribunal's decision and the analysis of the relevant legal provisions and precedents, the impugned Order denying the benefit of the notification was set aside, and the Appeal was allowed in favor of the Appellant.