1991 (12) TMI 251 - AT - Central Excise

Tribunal Classifies Airbags Under Tariff Item 4017, Grants Benefits /86

The Tribunal partly allowed the appeal, determining that the airbags and bladders are classified under Tariff Item No. 4017 and the respondents qualify ... Classification of goods under Heading 40.17 / Tariff Item 4017 - entitlement to benefit under Notification No. 217/86 (airbags and bladders as inputs used in, or in relation to, manufacture of tyres) - precedential effect of earlier Tribunal ordersClassification of goods under Heading 40.17 / Tariff Item 4017 - precedential effect of earlier Tribunal orders - Classification of the subject airbags and bladders as falling under Tariff Item 4017 / Heading 40.17 - HELD THAT: - The Tribunal treated the classification question in light of an earlier order in the case of the same respondents (Order No. 670/91-C dated 19-8-1991) which held that the subject goods fall under Tariff Item No. 4017. The respondents' representative conceded that position. Having perused the said earlier order and noting the concession, the Tribunal held that the subject goods are classifiable under Tariff Item 4017 (Heading 40.17) and allowed the appeal of the Revenue on this point. [Paras 2]Subject goods are classifiable under Heading 40.17 / Tariff Item 4017; appeal allowed on classification.Entitlement to benefit under Notification No. 217/86 (airbags and bladders as inputs used in, or in relation to, manufacture of tyres) - precedential effect of earlier Tribunal orders - Right of the respondents to obtain benefit under Notification No. 217/86 in respect of airbags and bladders - HELD THAT: - The Tribunal considered earlier decisions, specifically Order No. 521/90-C dated 24-5-1990 (following Order No. 148/89-C dated 5-4-1989), which held that airbags and bladders are inputs used in, or in relation to, the manufacture of tyres and are therefore eligible for the benefit of Notification No. 217/86 dated 2-4-1986. The Revenue accepted that position and the respondents did not press alternative relief under Notification No. 50/67, since they obtained maximum benefit under Notification No. 217/86. Applying the earlier Tribunal rulings, the Tribunal held that the respondents are entitled to the benefit of Notification No. 217/86 for the reasons given in the cited earlier order. [Paras 3]Respondents are entitled to the benefit of Notification No. 217/86 in respect of the airbags and bladders; consequential relief to be granted if any.Final Conclusion: The appeal is partly allowed: the subject goods are held classifiable under Heading 40.17 / Tariff Item 4017, and the respondents are entitled to the benefit of Notification No. 217/86; consequential relief to the respondents is permitted and the cross-objections are disposed of accordingly. The appeal involved the classification of airbags and bladders under Tariff Item No. 4017 and the interpretation of Notification No. 217/86. The Tribunal held that the goods fall under Tariff Item 4017 and the respondents are entitled to the benefit of Notification No. 217/86. The appeal was partly allowed, granting the respondents the relief.