TaxTMI 
TaxTMI 
2016 (11) TMI 1583
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....that the raw material required for the manufacture of Microcellular Rubber Sheets (Armaflex) are Nitrile butadiene rubber NBR, PVC resin, flame retardants, process oil, blowing agent, fillers, cross linking agent and accelerators. The raw material required for Microcellular rubber sheets (Armasound) is the scrapped or rejected microcellular rubber sheets and tubes. 2.2 TJie applicant stated that the Machinery required for the manufacturing of Microcellular rubber sheets (Armaflex) is mixer, roll mill, extruder, hot air circulating oven, timming and cutting machine. Machinery required for manufacture of Armasound is mixer, granulator, trimming and slicing machine. 2.3 The applicant has submitted a detailed report about the process of manufacture from Shri Kishor Deshpande, Chartered Engineer and Government Registered Valuer. 2.4 The Micro Cellular Rubber Tubes and sheets is used to cover piping application.lt preserve the required temperatures inside the refrigerating system. This is insulation material, which slow down the rate of heat transfer. It is also used for under deck applications for reducing the heat radiation from direct sun into the top floor of the building. This in....
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.... He stated that there is no material difference between plates, sheets and strips and it is only the difference in form and hence Excise Heading No. 4008 1110 covers plates, sheets as well as strips. Even the commercial use of tubes is not different than sheets, and hence it may be held that Armaflex Tubes are also covered under entry No. 210 of the Notification. He also argues that entry No. 210 of the notification mentions heading No. 40081110 and, this heading clearly covers 'plates, sheets and strips of micro cellular rubbber' and hence all the three items in dispute are covered under entry No. 210 of the notification even if the Excise Tariff heads are different. 3.6 He has also put forth an alternative argument that the product microcellular rubber tubes (Armaflex) is also covered under schedule entry C-72 which relates to "Pipes of all varieties including Gl pipes, ductile pipes, PVC pipes and their fittings" and further that in commercial world tube is called as pipe and pipe is called as tube. 4. The legal position, Analysis and discussion:- Here it would be worthwhile to take a look at the prevailing legal position with regard to the taxability of notified indu....
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....b-heading, and the aforesaid description is different in any manner from the corresponding description in the Central Excise Act, 1985, then only those commodities described as aforesaid will be covered by the scope of this notification and other commodities, though covered by the corresponding description in the Central Excise Tariff, will not be covered by the scope of this notification. Note (3)-Subject to Note 2, for the purpose of any entry contained in this notification, where the description against any heading, or, as the case may be, sub-heading, matches fully with the corresponding description in the Central Excise Tariff, then all the commodities covered for the purpose of said tariff under that heading or sub-heading will be covered by the scope of this notification. Note (4).- Where the description against any heading or sub-heading is shown as "other", then the interpretation as provided in Note 2 shall apply." 4.3 On analysis of tariff heading and notification and notes issued by state government, it is revealed that- a) If the commodities mentioned in the said notification and the Central Excise Tariff differ in description, then only the commodities described i....
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....lar view in Union of India v. Wood Papers Ltd., (1990) 4 SCC 256, Gammon (I) Ltd. v. Comm. of Customs, (2011) 12 SCC 499, Commissioner Of Central Excise, ... verses Mahaan Dairies on 17 February, 2004, (2004) 11 SCC 798. d) After analyzing the language of the notification, words employed in notification and rulings of Hon. Apex court, the said notification is required to be interpreted strictly. On this background, the claim of dealer being goods, Microcellur Rubber Tubes (Armaflex) covered under Central Excise Tariff No. 4009 1100 and Mocrocellularr Rubber Sheets (Armasound) covered by Central Excise Tariff No.4008 1190 falls under perview of the said notification cannot be accepted. 4.5 The notification issued by state government required to be construe strictly. On conjoint reading of said notification, factual position and application of rules of interpretation, it is observed that- a) The Microcellular Rubber Sheets (Armaflex) is covered by Central Excise Tariff No.4008 1110. This sub-heading finds a place in the Government Notification and hence applicant is charging tax as per Schedule Entry 54 of Schedule 'C' appended to the MVAT Act, 2002. b) The Microcellular ....
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....s the product as insulating material use it accordingly. The Tubing is generally used for structural purposes and its outer diameter (OD) is an important and exact number. Tubing size is specified by OD and the wall thickness (WT); and the measured OD and stated OD are generally within very close tolerances of each other. Pipes are categorized as tubular vessels used in pipeline and piping systems, and commonly transport gases or fluids. They are specified by "Nominal Pipe Size" (NPS) and Schedule (wall thickness). NPS is a size standard established by the American National Standards Institute (ANSI). Tubes are more expensive than pipe due to tighter manufacturing tolerances. Tubes even need not be round in shape always. On the other hand, pipes are always round in shape, they are measured by OD and and are used to transport gases or liquids. Pipes are typically also available in large sizes than tubes. Hence, the contention of the applicant that his product can also be termed as pipe and covered by the Schedule Entry relating to "Pipes of all varieties including Gl pipes, ductile pipes, PVC pipes and their fittings" cannot be accepted. 5.Conclusions:- 5.1 The words employed i....