TaxTMI 
TaxTMI 
2009 (2) TMI 493
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.... direct clearance to shoe manufacturers is to the tune of 30%, as claimed by the appellant and the balance 70% of the domestic sales are routed through traders, who in turn sell the same to small manufacturers of soles or heels for footwear. 2. The dispute in the present appeal is as to whether the said product being manufactured by the appellant is classifiable under heading 4008.21 or the same would fall under heading 4008.29. For better appreciation, we reproduce the said two entries as under. 4008.21 : Plates, blocks, sheets and strip of 'Vulcanised Non-Cellular Rubber, used in the manufacture of soles, heels or soles and heels combined, for footwear. 4008.29 : Plates, blocks, sheets and strip of Vulcanised Non-Cellular Rubb....
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....e purchasers and thus the end use of the product was not known to the unit at the time of clearance and inasmuch as some of the buyers are not in a position to show the actual use of the material purchased from the unit, their claim of classification under heading 4008.21 cannot be upheld. 5. On the other hand, it is the appellant's contention that the expression "used in the manufacture of" appearing against heading 4008.21 does not refer to the actual use of the product in case of each and every clearance. When the appellants are manufacturing the goods of a kind which are primarily meant for use in footwear heels or soles and have been found to be so used, in majority of the cases, the classification cannot be differed in those cas....
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....oticee are indeed of a kind used in heels, soles or heels and soles combined for footwear. As long as they are able to establish that the goods in question are of a kind used for the designated purposes, no onus is cast upon them to establish that in each and every clearance the actual end use was in the footwear industry. The probability of the goods having been used by somebody in some other manner will not change the classification at the appellant end, in respect of those clearances only. The appellants have produced on record affidavits and letters from the customers stating that the sheets purchased by them were used in the manufacture of soles, heels or heels and soles for footwear. It is also strongly submitted before us that the Re....
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..... Whether such expression has to relate to the actual use (emphasis provided) or the same has to be interpreted so as to mean that to be ordinarily used or intended use. If the interpretation advanced by the Revenue is accepted, the same would mean that the manufacturer of the rubber sheets is required to establish in each and every clearance that the same were actually used in the manufacture of soles or heels etc. for footwear. Further such sales may not be always to the actual users but may be through the traders, who further sell the goods to footwear manufacturers, in which case it is not only impractical but would be impossible for any manufacturer to verify the use of such goods at the customer's end and to establish (subsequent to c....
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....ctrical appliance, in order to satisfy the description of a domestic electrical appliance, must be actually used in the home or the house. What is necessary is that it must be of a kind which is generally used for household purposes and if that test is applied, there is no doubt that electric fans are domestic electrical appliances and the tribunal has therefore right in holding that they fall with entry 52 of Schedule B." As such it can be safely concluded that the expression "used in the manufacture of" appearing against the Sl. No. 4008.21 does not relate to the clearances actually used for the specific purposes but would cover all the clearances, even if in some of the cases the goods have not been actually shown to have been used for ....
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....have been sold directly to the footwear manufacturers or wherever it is established that the traders have sold the goods to the persons who have used it in the manufacture of soles and heels. This establishes that the appellants are engaged in the manufacture of rubber sheets of a kind to be used in the manufacture of soles and heels. 11. The statements recorded by the Department proved that the ultimate purchasers have used the sheet for manufacture of soles for footwear. The sales tax registration certificate on record also proves that the customers were either the dealers or manufacturers of footwear. The affidavit of 16 customers/letters or purchase orders also show that the sheets have been used in the manufacture of soles for fo....