Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Section 35/UCentral Excise Tariff Act 1944 Chapter Note-4 to Chapter 59 and Note-4 to Section XI of the Act: 1985 Tariff headings 59.02 and 59.06 Central Excise Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Central Excise Act, 1944; Section 35 1L Central Excise Tariff Act, 1985; Tariff headings 59.02 and 59.06, Chapter Note-4 to Chapter 59 and Note-4 to Section XI of the Act: Classification-Dipped Tyre Cord Fabric-Levy of excise duty under Tariff Headings 59.02 or 59.06-Held: Neither did the Tribunal examine the scope of Tariff Heading 59.02 nor did the assessing/adjudicating authority examine the matter in the light of Note-4 to Chapter 59 to ascertain rubber content in the product to determine the classifiability of the product-Since Supreme Court in a similar matter held that the product in question is classifiable under Tariff Heading 59.02, it is no more res-integra-Tribunal was wrong in equating the product as Rubberised Tyre Cord Fabric-The product is classifiable under Tariff Heading 59. 06-Matters remitted to Department to determine excisability and classification of the product afresh in accordance with law. The question which arose for determination in these appeals was as to whether Dipped Nylon Tyre Cord Warp Sheet was a High Tenacity Yarn in terms of Tariff Heading 59.02 of the Excise Tariff Act. It was contended by the Revenue that Grey Tyre Cord Fabric after dipping was classifiable under Tariff Heading 59.02 as Processed Tyre Fabric; that in terms of Tariff Heading 59.06, Rubberised Textile Fabric other than those falling under Tariff Heading 59.02 alone would fall under Tariff Heading 59.05; thus, Dipped Tyre Cord Fabric would fall under Tariff Heading 59.02; that as per rule (I) of the Interpretation Rules appended to the Schedule to the Central Excise Tariff Act, classification of the product has to be decided according to the terms of the Heading; Since Heading 59.02 covered Tyre Cord Fabric of High Tenacity Yarn, the product was rightly classified by the Department under Tariff Heading 59.02; and that the Tribunal has not examined the "process of dipping" and it has merely followed the previous judgements which do not have any application to the product in question. Assessee submitted that Dipped Tyre Cord Fabric was not an independent product in terms of manufacture and marketability; that the assessee did not manufacture the product; that there is no evidence of the product being marketable; that the base fabric after going through the process of dipping loses its identity and becomes a different product commercially; that the product under Chapter Heading 59.02 is the basic product and when dipped it gets shifted from textile to rubber; that in the show-cause notices, there was no allegation to the effect that the product was marketable; and that the product in question was classifiable under Chapter Heading 59.05 of Central Excise Tariff Act, 1985, as held by this Court in the cases of Falcon Tyres and Vikran Tyres. |
Judge | Honble Mr. Justice S.H. Kapadia |
Neutral Citation | 2005 INSC 48 |
Petitioner | Commissioner Of Central Excise, Goa And Chennai |
Respondent | M.r.f. Ltd., Chennai |
SCR | [2005] 1 S.C.R. 814 |
Judgement Date | 2005-01-25 |
Case Number | 1476-1493 |
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