Precured tread rubber classification under tariff sub-heading 4008.21 sustained, with SSI exemption denied.

Vulcanised precured tread rubber rolls and sheets were treated as classifiable under sub-heading 4008.21 of the Central Excise Tariff Act, 1985, on the basis of the tariff scheme, Chapter 40 and the applicable Larger Bench ruling. The argument that the goods should fall under sub-heading 4016.99 did not prevail, as the Tribunal relied on the existing larger bench classification and the Board's instructions. That classification also meant the denial of SSI exemption was sustained against the assessee.

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Issues: Whether vulcanised precured tread rubber rolls and sheets were correctly classifiable under sub-heading 4008.21 of the Central Excise Tariff Act, 1985, and whether the reclassification warranted denial of SSI exemption.

Analysis: The product was held to be covered by the Larger Bench decision which, after considering the tariff entries, Chapter 40 and the Board's instructions, classified precured tread rubber in rolls and sheets under sub-heading 4008.21 and not under sub-heading 4016.99. The plea that the matter related to an earlier period and that the product was vulcanised precured tread rubber did not persuade the Tribunal, since the larger bench ruling had already examined the relevant circular and tariff position.

Conclusion: The classification under sub-heading 4008.21 was upheld and the denial of SSI exemption was sustained, against the assessee.

Ratio Decidendi: Precured tread rubber rolls and sheets are classifiable under sub-heading 4008.21 of the Central Excise Tariff Act, 1985 on the basis of the tariff scheme and Chapter 40, and the larger bench classification governs the dispute.

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