2008 (9) TMI 780

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....Kiran S. Javali, the learned advocate, appeared on behalf of the appellants and Shri P.R.V. Ramanan, learned Special Counsel, for the Revenue. 3. The issue relates to the recovery of Basic Excise Duty(BED) and Additional Excise Duty(AED) on 'Rubberised Nylon Tyre Cord Fabrics' (RNTCF in short) used as an input in the manufacture of Tyres for Animal Drawn Vehicles, which were fully exempted from duty. 11 show Cause Notices were issued for the period from April, 1996 to May, 2001. The Adjudicating Authority confirmed the demands vide OIO No. 01/2004 dated 31-5-2004. The appellants approached the Commissioner (Appeals) against the said order. The Commissioner (Appeals), by his order No. 92/2005 dated 29-3-2005 has held that RNTCF would....

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....eriod May, 1996 to October, 1996 and during the period November, 1996 to April, 1997 respectively. By the said show cause notices, the department sought to classify Rubberised Tyre Cord Fabric under Chapter Heading 59.02. M/s. M.R.F. Ltd., however, contended that Rubberised Tyre Cord Fabric was classifiable under Chapter Heading 40.05. According to the assessee, on rubberization, the content of rubber in the product exceeded the prescribed limit vis-a-vis the fabric and, therefore, it was classifiable under Chapter Heading 40.05. However, the Commissioner, Chennai came to the conclusion that Rubberised Tyre Cord Fabric was classifiable under Chapter Heading 59.05 (now 59.06). He placed reliance on the judgments in Falcon Tyres (supra) and V....