2006 (6) TMI 311 - AT - Central Excise

Tribunal Upholds Nil Duty for 'Extruded Rubber Platen Shell' in Tube Form

The Tribunal affirmed the lower order classifying the product 'Extruded Rubber Platen Shell' in tube form under CET sub-heading 4009.99 with a Nil rate of ... Rubber and articles thereof Issues:Classification of 'Extruded Rubber Platen Shell' - Whether under CET sub-heading 4016.99 or 4009.99.Analysis:The appeal filed by the Revenue concerns the classification of the product 'Extruded Rubber Platen Shell' in tube form. The Revenue argues for classification under CET sub-heading 4016.99, while the assessee contends, and the lower Appellate Authority agrees, that the product should be classified as a tube under CET sub-heading 4009.99 with a Nil rate of duty. The show cause notice initially proposed classification under CET sub-heading 4016.19, claiming the product was akin to a typewriter roller made from Chapter 40.08 material. However, the Adjudicating authority found that the product was made from material under heading 4005.00, not 40.08, thus rejecting the Revenue's classification proposal. The Tribunal concurred, emphasizing that the classification under 4016.19 was never proposed in the show cause notice, leading to the affirmation of the lower order classifying the product under CET sub-heading 4009.99.The Tribunal's decision was based on the clear finding that the product in question was not made from the material specified by the Revenue in the show cause notice. Since the material used was from heading 4005.00 and not 40.08 as claimed by the Revenue, the classification under CET sub-heading 4016.19 was deemed incorrect. The Tribunal highlighted the importance of adherence to the classification proposed in the show cause notice, ultimately upholding the lower order classifying the product under CET sub-heading 4009.99. The rejection of the Revenue's appeal was grounded in the lack of merit due to the misalignment between the proposed classification and the actual material used in manufacturing the product.The cross objection filed by the assessee was disposed of in line with the main appeal decision, reinforcing the classification of the product under CET sub-heading 4009.99. The Tribunal's ruling provides clarity on the classification of the 'Extruded Rubber Platen Shell' in tube form, settling the dispute between the Revenue and the assessee regarding the appropriate classification under the Central Excise Tariff. The decision underscores the significance of accurate classification based on the material composition of the product, as outlined in the show cause notice, to ensure fair and consistent application of duty rates.