Classification of solvent based rubber solution under Heading 3506.00 sustained, while exemption entitlement remand was upheld for factual verification.

Solvent based rubber solution was held classifiable under Heading 3506.00, following the earlier decision on the same product and the same reasoning. The remand on eligibility for Notification No. 250/86-C.E. was also left undisturbed because it only required verification of whether the goods were manufactured without the aid of power, a factual issue for the assessing authority. The classification was sustained in favour of the department, and the exemption question remained open for de novo examination.

---

---

Issues: (i) Whether the solvent based rubber solution was classifiable under sub-heading No. 3506.00; (ii) Whether the order remanding the question of entitlement to the benefit of Notification No. 250/86-C.E. required interference.

Issue (i): Whether the solvent based rubber solution was classifiable under sub-heading No. 3506.00.

Analysis: The classification issue had already been considered in the earlier appeal relating to the same product, and that view had been affirmed. The same reasoning was followed here, as the product was found to fall within Heading 3506.00.

Conclusion: The product was correctly classifiable under sub-heading No. 3506.00.

Issue (ii): Whether the order remanding the question of entitlement to the benefit of Notification No. 250/86-C.E. required interference.

Analysis: The remand only directed verification of the assessee's claim that the product had been manufactured without the aid of power, which was relevant to the claimed notification benefit. As the earlier order was already in the nature of a remand for de novo verification, there was no infirmity in leaving that question open for examination by the assessing authority.

Conclusion: The remand regarding Notification No. 250/86-C.E. was upheld.

Final Conclusion: The classification in favour of the department was sustained, and the remand on the exemption issue was left undisturbed, resulting in rejection of the revenue's appeal.

Ratio Decidendi: Where the classification of the product has already been settled on the same reasoning, the later appeal will follow that determination, and a remand directing verification of factual entitlement to an exemption cannot be interfered with absent infirmity.

---