BENGAL WATERPROOF LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THESE two appeals were filed by Assessees before this forum. One such Appeal was registered as Appeal case No. EDM -278/2005. That arose out of order -in -appeal No. 16/Kol -III/2005 dated 23.02.2005. The second one was registered as Appeal case No. EDM -366/2005 and that arose out of order -in -original No. 02 -04/Commr./CE/Kol -III dated 30.03.2005. Both the appeals involving common question of classification were heard analogous and considered proper for common disposal by this order with the consent of both parties.

(2.) THE ld. Sr. Counsel Mr. Bagaria appearing for the Appellants submitted that the process of manufacture of rainwear requires raw materials such as: cotton fabrics, crumb rubber and sheet rubber which are natural rubber, synthetic rubber and few chemicals. Crumb rubber with other chemicals undergo processing for preparation of compound mixing and such mix is spread on fabrics. The fabric with a spread of mix is passed through rollers and thereby the mix gets properly and evenly coated on the fabric. The said processed fabric with a coat of the above mix is then cured which results in proper bonding between mix of rubber and chemicals with the cotton fabric and the fabrics get rubberised. The outcome so arrived is called rubberised textile fabrics. Such rubberised textile fabric is the basic raw -material to make rainwear through the process of cutting, stitching and all other activities. The rubberised textile fabric which is used in making of rainwear is an excisable goods and classified under the heading No. 59.06 of chapter 59 under Central Excise Tariff Act, 1985 which was not disputed by Revenue at any time.

(3.) THE ld. JDR appearing for Revenue submitted that the order passed by the authorities below did not suffer from any legal infirmity. He supported the order of the authority below and submitted that the appellant is not entitled to benefit of any exemption Notification and for the wrong availment they were rightly dealt under law both in respect of levy of duty as well as penalty. According to Revenue, classifying the goods under sub -heading 4015.00 under Chapter 40 is well founded since the goods were apparel and clothing. Whether such goods used or not is irrelevant. However, Revenue did not dispute that the goods manufactured were rainwear and manufactured out of Rubberised Textile Fabric squarely falling under sub -heading 59.06. According to him, apparel and clothing for all -purpose being covered by sub -heading 4015.00 under Chapter 40, the sub -heading covers both rain cloth and other clothes within its fold. The rubberised fabric were vulcanised rubber and not entitled to any exemption but dutiable.