TaxTMI 
TaxTMI 
2008 (7) TMI 173
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....ellants and Shri K. Sambi Reddi, learned JDR for the Revenue. 3. We heard both sides. The issue involved in these appeals is the correct classification of the items exported by the respondents. It has been urged by the respondents that the items exported by them are only rubber compounded sheets falling under 4005 of the Customs Tariff. However, the department considered them as rubber mat and issued the adjudication order classifying the item under Chapter 4016. This is strongly challenged by the respondents. The respondents approached the Commissioner (A) and the Commissioner (A) after examining the matter set aside the original orders based on the decision of the Hon'ble Kerala High Court. According to the impugned orders, the items are....
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.... the Customs Tariff covers 'Rubber and articles thereof. Chapter Note 9 states that: "In headings 4001, 4002, 4003, 4005 and 4008, the expressions "plates", "sheets" and "strip" apply only to plates, sheets and strip and to blocks of regular geometric shape, uncut or simply cut to rectangular (including square) shape, whether or not having the character of articles and whether or not printed or otherwise surface-worked, but not otherwise cut to shape or further worked." Thus it is clear that articles that are cut to shape or further worked will not fall under the headings 4001, 4002, 4003, 4005 and 4008. The exported items are rubber mats which are cut to size and which have been further worked, so that they are of a definite shape and ha....
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.... not legal and proper. 6. Under the heading 4016 "other articles of vulcanized rubber other than hard rubber", the tariff item 40169100 of the Customs Tariff covers "Floor covering and mats". The export item, viz., rubber mats are therefore specifically covered under the tariff item 40169100. Rule 3(a) of 'The General Rules for the Interpretation of Import Tariff states that the heading which provides the most specific description shall be preferred to headings providing a more general description. In this case the tariff item 40169190 provides the most specific description of the export items, viz., rubber mats and hence the classification made by the Department is correct, legal and proper. 7. The issue regarding whether 'rubber mats' a....
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....red vulcanized rubber article. It is made of rubber compound". It can be clearly seen that the report in 2005 states that the article is vulcanized whereas the report in 2004 does not make any mention of vulcanization. Hence the reason to change the classification in 2005 from 4005 to 4006 was because the report in 2005 stated that the article was vulcanized. Hence the observation of the Commissioner (Appeals) is factually incorrect." 4. The learned advocate for the respondents stated that the Customs Authorities have been classifying the item under 4005 for a very long and the test reports reminding the same, there is no reason why they should be classified under 4016. Our attention was also invited to the decision of the Kerala High Cour....