2009 (3) TMI 369 - AT - Central Excise

Appellate Tribunal reclassifies 'latex bulbs' as hygienic articles of vulcanized rubber

The Appellate Tribunal CESTAT in CHENNAI allowed the Revenue's appeal, setting aside the reclassification of 'latex bulbs' under Chapter Sub-Heading ... The issue to be decided in the instant case is the correct classification of an accessory used in an Intravenous set called latex bulb. The item is a short rubber tube of vulcanized rubber used in the IV set to enable intravenous administration of an additional fluid/medicine without piercing the vein a second time. - Commissioner (Appeals) classified the item under C.S.H. 9018.00 invoking Chapter Note 2(b) of Chapter 90. - By virtue of this Note, articles of vulcanized rubber of Chapter 40 such as latex bulb cannot be classified under Chapter 90 - entry 40.14 covers hygienic or pharmaceutical articles (including teats) of vulcanized rubber other than hard rubber, with or without fittings of hard rubber. - The list of items covered under HSN Notes to Heading 40.14 are all not capable of use as such independently - The latex bulb in question used in an IV set, in our view, is a hygienic article of vulcanized rubber other than hard rubber belonging to the family of articles cited in the above H.S.N. Note - We hold that the item is appropriately classifiable under C.S.H. 4014.90 as decided by the original authority. The impugned order is therefore liable to be set aside. – Goods further marketable as identical goods imported for sale – Revenue’s appeal allowed The Appellate Tribunal CESTAT, CHENNAI, consisting of Ms. Jyoti Balasundaram and Shri P. Karthikeyan, heard Cross Objection No. E/CO/9/2004, involving the classification of a product called 'latex bulbs' manufactured by M/s. Jain Rubber Pvt. Ltd. The original authority reclassified the product under Chapter Sub-Heading 4014.90, demanding differential duty. The Commissioner (Appeals) later upheld the classification as CSH 9018.00. The Revenue filed an appeal to restore the original authority's order, arguing that the goods were marketable and excisable under Chapter Sub-Heading 4014.90. The respondents contended that the latex bulb was not an article but a part of an IV set, classified under Chapter 9018. The Tribunal analyzed the issue and found that the latex bulb was appropriately classified under C.S.H. 4014.90, as it was a hygienic article of vulcanized rubber used in an IV set. The impugned order was set aside, and the appeal by the Revenue was allowed. The Tribunal also dismissed the argument that the goods were not established to be marketable, as identical goods had been imported for sale. The decision was pronounced on 16-3-2009.