TaxTMI 
TaxTMI 
2001 (7) TMI 185
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....sub-heading No. 5902.10 on payment of basic excise duty as well as additional duty of excise. 1.3The said tyre cord fabric is processed in their factory for further captive consumption in the manufacture of the excisable products. The process undertaken in their factory are that the Grey/Unprocessed Nylon Tyre Cord Fabric is first dipped in a solution consisting of Resorcinol Formaldehide and Vinyl Pyridine Latex to impart the character of adhering to rubber components. Inasmuch as the nylon tyre cord fabric has the characteristic to shrink at high temperature, the same is subjected to a treatment of heat stretching and relaxing also called normalisation. After the above processes of dipping and passing through are over, the emerging pro....
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....lassifiable under Heading 59.06 of the Central Excise Tariff in which case no additional duty of excise is payable. It was submitted that the adjudicating authority has wrongly observed that the said decisions are not applicable to the facts and circumstances of their case and has illegally dismissed the precedent decisions by observing that the contending entry 59.02 was not before the Tribunal. As such submits the ld. counsel that the goods are properly classifiable under Heading 59.06 and as such there was no occasion for the adjudicating authority to reject their claim on classification. 3.Shri V.K. Chaturvedi, ld. SDR has appeared on behalf of the Revenue and reiterated the department's stand. 4.We find that the appellants have s....
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....bove make it clear that the departmental authorities are bound by such clarification and are to follow the decisions on classification by the higher forum. Though the Commissioner in the impugned order has not dealt with the implications of the precedent decisions and clarification of the Board, we find that the matter is settled clearly enough about the classification of the goods in dispute which have to be followed by the departmental authorities. We are also of the view that the classification claimed by the assessee will not be determinative of the issue and cannot be made the basis of determining correct classification, especially when there are binding judicial pronouncements and clarification by the Board thereon. Therefore, we allo....
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....the present matter. 7.We also find that the South Zonal Bench of the Tribunal in the case of MRF Ltd. v. CCE - 1999 (105) E.L.T. 619 (T) has again held that the dipping/rubberised tyre cord fabrics are properly classifiable under Heading 59.06 of CETA, 1985. Para 8 of the said decision is reproduced below :- We have carefully considered the arguments on"8. both sides. We note that this tribunal is a precedential court. We also note that any clarification or circular issued by the department is not legally binding on us. These are well settled laws and do not need any further reiteration. We find that in the 3 decisions of the CEGAT cited by ld. Sr. Counsel supra, the product classified is same. One of these decisions (the latest) is b....