TaxTMI 
TaxTMI 
2016 (12) TMI 224
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat the issue of classification of cord fabrics stands settled by the Larger Bench of the Tribunal in the case of Vikrant Tyres Ltd. - 1997 (90) ELT 178 (T-LB). Against this order, the Department filed appeal before the Hon ble Supreme Court which vide order dated 8.5.2007 remanded the matter to the Original Adjudicating Authority for a fresh decision. The Original Authority decided the case vide impugned order dated 15.03.2013. The present appeal is against this order. 2. Briefly stated, the facts of the case are that the appellants are engaged in the manufacture of nylon tyres liable to central excise duty. They were availing modvat credit facility under erstwhile Rule 57A of the Central Excise Rules, 1944. They were also engaged in the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Falcon Tyre Ltd. and Vikrant Tyres Ltd. and since we have drawn a distinction between dipped tyre cord fabric and rubberized tyre cord fabric in the case of MRF Ltd. which judgement came subsequent to the judgement impugned herein (in fact it has been given on the same date i.e. 25.01.2005) the matter needs to be reconsidered by the adjudication Commissioner after examining the process and the procedure followed by the assessee in the manufacture of the product which the assessee calls as Dipped Rubberised tyre cord fabric. We make it clear that if the Department comes to the conclusion after examining the process that the product is a rubberized tyre cord fabric then the same shall be classifiable under Chapter Heading 59.05 as held by t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... manufacturing process of rubber tyres. The goods do not have any shelf life and have to be subjected to the processing immediately. As such, the product cannot be considered as marketable. The product is sticky and cannot be kept for any considerable amount of time. There is no new product satisfying the criteria for manufacture. In other words, the Tyre Cord Fabric remains Tyre Cord Fabric and there is no change in its character or use in the said process; (C ) The goods merit classification under CETH 5906 and the Commissioner has erroneously classified the product under CETH 5902; (D) Without prejudice to the above, exemption was rightly available for Additional Duty of Excise under Notification No.67/95. The wordings of the notific....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ric i.e. rubberised by passing through a calender and applying rubber compound on both sides of warp sheet on sophisticated machine 4 roll calendar. 8. He noted that the dispute of classification in the present case is limited to the classification of Rubberisation Stage-I Dipped fabric only. After examining Note-IV of Chapter 59 of Central Excise Tariff, the Original Authority concluded that applying the principle of predominance, the product of Rubberisation Stage-I dipped fabric is correctly classifiable under CETH 5902. 9. It is relevant to note that the appellant themselves declared dipped rubberized fabrics (pre-rubberisation stage) under CETH 5902.10 for clearance of the product to their unit at Kankroli. When it came for captive c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted by the road long distance and capable of being bought and sold. 11. After careful examination of the impugned order and the appellant s submission, we find no reason to interfere with the findings of the lower authority. 12. Regarding appellant s claim for exemption of Additional Excise Duty under Notification no.67/95-CE, we note that the said notification grants exemption only for basic excise duty i.e. duty of excise specified in the schedule to the Central Excise Tariff Act, 1985. This issue has been examined by the Original Authority, who noted that the Board vide Circular dated 22.01.2001 categorically clarified that the classification of Tyre Cord Warp Sheet is covered under Heading No.5902 on which AED is leviable from 16.03.1....