2018 (12) TMI 90

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.... manufacture of Hawai Chappal as also Micro Cellular Rubber Blocks. Micro Cellular Rubber Blocks are classifiable under the Heading 4008 19 10 attract nil tariff rate. Inasmuch as the value of clearance of the Hawai Chappal was less than the value of total clearance of Rs. 1.5 crores and the blocks attracted nil tariff rate of duty, the appellant was enjoying the benefit of Small Scale Exemption Notification. 2. As a result of investigations conducted at their end, Revenue formed an opinion that the Micro Cellular Rubber Blocks being manufactured by the appellant and cleared under nil tariff rate are actually Micro Cellular Rubber Sheets, which are classifiable under Chapter heading 4008 11 10 which attracted 10% advance rate of duty. As....

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....heir customer as soles or heels of footwear. He has drawn our attention to the invoice raised by the appellant wherein they have been shown as the manufacturer of Micro Cellular Blocks and hawai chappal etc. The description of the goods in the said invoices stand mentioned as 'sole' alongwith the size of the same. He submits that the goods cleared by them are in the nature of Blocks which are used as soles or heels by their customers. The Revenue's only basis for holding that the goods cleared by them are sheets are the VAT documents where the goods have been described as sheets for the purpose of payment of VAT. He submits that during the course of adjudication, it stand clarified by them that the VAT is being paid under the provisions of ....

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.... the manufacturer himself. We also note that the appellants have produced affidavits of their customers supporting their stand. 7. As such, we find no merits in the Revenue's above stand. 8. In any case and in any view of the matter even if the goods are held to be sheets, as contended by the Revenue, we note that the same are exempted in terms of Sr.No.39 of Notification No.3/2005-CX dated 24/02/2005 as amended. In terms of the said Serial number sheets of Micro Cellular Rubber used in the manufacture of soles, heels or soles and heels combined for footwear attract nil rate of duty. The appellants have produced on record the affidavit of their customers indicating that the goods stand used by them in the manufacture of soles or heels....