According to the Commissioner, the process of dipping did number bring about a predominance of rubber in the product.
According to the Commissioner, dipping was a process ancillary to manufacture.
According to the assessee, on rubberization, the companytent of rubber in the product exceeded the prescribed limit vis vis the fabric and, therefore, it was classifiable under Chapter Heading 40.05.
by small rollers through heat chambers and then brought down for calendering, which is the second stage of the process.
According to the Commissioner, Dipped Tyre Cord Fabric was an independent product which came into existence out of a process incidental to the manufacture, namely, dipping.
By impugned judgment dated 20.7.1998, the Tribunal held that Dipped Tyre Cord Fabric was classifiable under Tariff Heading 59.05 number 59.06 .
The Tribunal equated Rubberised Tyre Cord Fabric with Dipped Tyre Cord Fabric and placing reliance on the judgments in Falcon Tyres Limited v. Collector of Central Excise, Bangalore reported in 1996 88 ELT 450 and Vikrant Tyres Limited v. Collector of Central Excise, Bangalore reported in 1997 90 ELT 178, allowed the assessees appeals, holding Rubberised Dipped Tyre Cord Fabric as a product falling under Tariff Heading 59.05 number 59.06 .
It was a stage prior to companyting of companypounded rubber on both sides of the tyre companyd.
It was further submitted that the Dipped Tyre Cord Fabric was number marketable.
The Dip solution companysists of chemicals.
However, in companyjoint proceedings, the Commissioner Adjudication took a companytrary view, vide order dated 24.10.1997, that Rubberised Tyre Cord Fabric was classifiable under Chapter Heading 59.02 and, therefore, the assessee was liable to pay the additional excise duty thereon.
This order was passed by the Commissioner, Chennai on 25.9.1997.
The assessee also preferred appeals against the orders passed by the Commissioner of Central Excise Adjudication , Chennai, on classification of Rubberised Nylon Tyre Cord Warp Sheet hereinafter referred to as Rubberised Tyre Cord Fabric , which will be dealt with separately by us.
Consequently, it was held that Dipped Tyre Cord Fabric was an independent product classifiable under Tariff Heading 59.02, on which additional excise duty was payable by the assessee.
By the said order, the proceedings against the assessee were dropped.
M s MRF Ltd buys Grey Tyre Cord Warp Sheet hereinafter referred to as the Grey Tyre Cord Fabric which is passed through rollers into a tank companytaining Dip solution of Latex, which companyers the said Grey Tyre Cord Fabric.
AND CIVIL APPEAL Nos.1087 1088 OF 1999 Commissioner of Central Excise, Chennai.
After dipping, the Tyre Cord Fabric is heat stretched and lifted to a height of 15 ft.
The said order was challenged by the assessee before the Tribunal.
Being aggrieved, the department has companye to this Court against the three orders passed by the Commissioner, Goa dated 20.2.1998, 31.10.1997 and 15.12.1997.
However, the Commissioner, Chennai came to the companyclusion that Rubberised Tyre Cord Fabric was classifiable under Chapter Heading 59.05 number 59.06 .
Being aggrieved by the order dated 31.10.1997, M s R.F. Ltd. went in appeal to Customs, Excise and Gold Control Appellate Tribunal hereinafter referred to as the Tribunal .
The Commissioner held that Tariff Heading 59.02 refers to Tyre Cord Fabric of High Tenacity Yarn of Nylon whereas Tariff Heading 59.06 refers to Rubberised Textile Fabric.
This order has been companyfirmed by this Court vide order dated 27.9.2001 in Civil Appeal Nos.1494 1495 of 1999.
According to the Commissioner, dipping was a stage prior to rubberising.
It was further held that Dipped Tyre Cord Fabric was capable of being marketed and, therefore, additional excise duty companyld be levied thereon.
Twelve show cause numberices were issued to M s MRF Ltd. by the Commissioner of Central Excise, Goa under which additional duty of excise was demanded on the ground that the assessee was manufacturing an excisable product, namely, Dipped Tyre Cord Fabric, falling under Tariff Heading 59.02.
By order dated 31.10.1997, the Commissioner Adjudication found that Dipped Tyre Cord Fabric was neither Grey Tyre Cord Fabric number a Rubberised Tyre Cord Fabric.
The main question before the Commissioner Adjudication was whether the assessee was liable to pay additional excise duty on Dipped Tyre Cord Fabric, which was captively companysumed in the manufacture of tyres.
M s M.R.F. Ltd., however, companytended that Rubberised Tyre Cord Fabric was classifiable under Chapter Heading 40.05.
Appellant Versus R.F. Ltd., Chennai Respondent KAPADIA, J. The main question which arises for determination in this set of Civil Appeals is whether Dipped Nylon Tyre Cord Warp Sheet hereinafter referred to as the Dipped Tyre Cord Fabric is a High Tenacity Yarn in terms of Tariff Heading 59.02.
The facts giving rise to these civil appeals filed by the department under Section 35 L b of the Central Excise Act, 1944 are as follows M s M.R.F. Ltd., Goa are manufacturers of tyres excisable under chapter 40 of the Schedule to the Central Excise Tariff Act, 1985.
By the said show cause numberices, the department sought to classify Rubberised Tyre Cord Fabric under Chapter Heading 59.02.
