2003 (11) TMI 486 - AT - Central Excise

Insoles not Exempt: Tribunal Upholds Decision on Footbed Insoles, Rejects Appeal

The Tribunal rejected the appeal by M/s. Bata India Ltd., upholding that footbed insoles do not qualify for exemption under Notification No. 48/96-C.E. ... Insoles - Footbed insoles Issues:Whether the benefit of exemption under Notification No. 48/96-C.E. is available to footbed insoles manufactured by M/s. Bata India Ltd.Analysis:The appeal filed by M/s. Bata India Ltd. raises the issue of whether footbed insoles manufactured by them qualify for the exemption under Notification No. 48/96-C.E. The Appellant argued that insoles are distinct from soles and should be considered component parts of footwear eligible for exemption. They provided certificates from manufacturers and dealers in support of this claim, emphasizing that soles and insoles serve different functions in footwear and are treated as separate entities in the industry. The Appellant also cited legal precedents to support their position, highlighting the importance of technical and commercial understanding in such cases.On the other hand, the Respondent contended that the definitions of sole and insole from technical literature and dictionaries indicate that insoles are indeed a type of sole. The Commissioner (Appeals) based their decision on these definitions, stating that the outer sole, middle sole, and insole collectively form the sole of footwear. The Commissioner concluded that insoles fall under the category of sole, thus not qualifying for the exemption under the Notification.After considering both sides' arguments, the Tribunal analyzed the definitions provided in technical literature and dictionaries regarding soles and insoles. The Tribunal noted that the Assistant Commissioner's decision was based on the understanding that insoles are part of the sole structure of footwear. Despite the Appellant's submission of certificates and an affidavit, the Tribunal found the evidence insufficient to establish that insoles should be treated separately from soles. The Tribunal agreed with the Commissioner (Appeals) that insoles are indeed a type of sole and, therefore, do not qualify for the exemption under Notification No. 48/96-C.E. Consequently, the appeal was rejected.In conclusion, the Tribunal upheld the decision that footbed insoles manufactured by M/s. Bata India Ltd. are not eligible for the exemption under Notification No. 48/96-C.E. based on the understanding that insoles are considered part of the sole structure of footwear according to technical definitions and industry practices.