 |
OFFICE OF THE
COMMISSIONER OF CUSTOMS, |
PUBLIC
NOTICE NO. 77 /2001
Sub: Classification of Rubber Cement or Black Vulcanizing Cement
rubber solution etc. whether under
35.06 or 40.05 of the Schedule to CET.
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Govt. of India, Min. of
Finance, Dept. of Revenue, New Delhi,
Circular No.561/57/2000-CX., vide F.No.99/3/98-CX.3 dated 07.12.2000, is reproduced
below for the guidance of the Importers, Clearing Agents and the Trading
Public.
C11/21/2001-AP(PORT)
(T.S. JAYACHANDAR)
CUSTOM HOUSE, CHENNAI-1. ASSTT. COMMR. OF CUSTOMS (APPG.)
DATE : 19.04.2001
________________________________________________________________________
CIRCULAR
NO.561/57/2000-CX
F.NO.99/3/98-CX.3 DATED
07.12.2000
1.
I am directed to invite your attention to Board’s
Circular No.30/88-CX-3 dated 7.12.88 and 32/90-CX-3 dated 28th June,
90, wherein it was clarified that vulcanization solution or rubber solution was
classifiable under Heading No.40.05 of the Central Excise Tariff.
2.
The review of the above mentioned circulars has
been necessitated in view of the number of CEGAT and Court judgements
classifying the goods in question under Heading No.35.06 of the Central Excise
Tariff, as well as the decision taken in the tariff cum general conference of
the Chief Commissioners held at Mumbai on 29.08.2000.
3.
The Tribunal has held that rubber cement or black
vulcanizing cement used as adhesive in retreading of tyres was classifiable
under heading No.35.06 of the CET in the case of Elgi Polytex Ltd., Coimbatore
Vs. CCE, Coimbatore 1988-(34) E.L.T. 404 (Tribunal). The appeal filed by the
department against this judgement in Supreme Court was dismissed by the Apex
Court on 6.4.98. In this judgement the CEGAT had held that as the subject
product contains, apart from rubber compound and solvent, sulphur, carbon
black, stearic acid, zinc oxide, fillers and accessories, the product answers
to the description of rubber based adhesives. The correct classification of the
product, therefore, would be as a prepared adhesive in Chapter 35 of the
Central Excise Tariff Schedule.”
4.
On a similar issue of classification of universal
spray compound, relying on its earlier decision in the case of Elgi Polytex
Ltd., CEGAT had held it to be classifiable under Chapter Heading 35.06 in the
case of M/s. Indag Rubber Ltd. Vs. CCE, Jaipur (1997) (96) E.L.T. (559). The
Supreme Court upheld this judgement and dismissed Department’s appeal in April
1998.
5.
In fact in a reasoned order, Hon’ble Apex court in
the case of CCE, Madras Vs. MRF Ltd. upheld the CEGAT order that rubber cement
or black vulcanizing cement manufactured from vulcanized rubber was
classifiable under Heading 35.06 after 10.2.87 and not under 40.05 as claimed
by Revenue [1998 (97) E.L.T. 23 (SC)].
6.
The matter was also discussed in the tariff cum
general conference of the Chief Commissioners held at Mumbai on 29.8.2000,
where it was decided that taking into account various CEGAT judgements, which
were appealed against but were all dismissed by the Supreme Court, it would be
appropriate to revise the classification of the goods in question from Chapter
Heading 40.05 to 35.06.
7.
The Board is in agreement with the above reasoning.
Accordingly, it is ordered that the Board’s earlier Circular No.30/88-CX-3
dated 7.12.88 and 32/90-CX-3 dated 28th June, 90, are modified to
the extent that products marketed under separate nomenclatures like vulcanizing
cement essentially comprising rubber compound, certain vulcanizing agents and
certain other adhesives and solvents, which are used for these adhesive
properties in retreading of tyres etc. are classifiable under Heading 35.06 of
the Central Excise Tariff, instead of Heading 40.05.
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