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Clarification regarding classification of Rubberised Tyre Cord Warp
Sheets for cycle tyres, which do not reportedly contain weft yarn
Circular
No. 320 dated 30th June 1997
I
am directed to say that doubts have been expressed regarding correct
classification of Rubberised Tyre Cord Warp sheets whether or not containing
weft yarn used in the manufacture of cycle tyres. It has been reported by field
formations that cycle tyre manufactures are using both the type of tyre cords
i.e. tyre cord containing only warps and no wefts and tyre cord containing both
warps and wefts. It has also been reported that the warp sheets not containing
any weft yarn are also known as 'fabrics' in the trade parlance.
2.
Chapter Note 4 (c) to Chapter 59 of schedule to CETA, 1985 clarifies that
for the purpose of heading No. 59.06, the expression 'rubberised textile
fabrics' means fabrics composed of parallel textile yarns agglomerated with
rubber, irrespective of their weight per square meter.
3.
Heading No. 59.06 under the HSN Explanatory Notes covers weft less
fabrics composed of parallel textile yarns agglomerated by gumming or
calendering with rubber irrespective of their weight per square mater. It
further clarifies that these products are used for the manufacture of tyre,
rubber tubes, transmission or conveyor belts or belting, etc. This heading,
however, does not apply to plates, sheets and strips of textile fabric combined
with cellular rubber in which the textile fabric is present merely as
reinforcement.
4.
Reliance has also been placed on the judgement of Supreme Court in the
case of M/s. DCM v. State of Rajasthan [ (1980) (6) ELT 383 (SC) wherein it has
been held that even in the modern process of manufacturing with the cords
assembled in parallel order and rubberised without the intermediate process of
weaving on a loom will not take away the 'type cord fabric' from the category of
fabric.
5.
Matter has been examined in the Board in context of the above.
Accordingly in view of the foregoing fact I am directed to say that rubberised
tyre cord fabric whether or not containing wefts used in the manufacture of
cycle tyres is appropriately classifiable under heading 59.06 of the Central
Excise Tariff Act, 1985.
6.
Attention in also invited to Board's telex F.No. 99/7/94-CX.3 dated 8th
October 1996. It has been decided to withdraw the instructions contained in
Board's said telex dated 8th October 1996.
7.
Trade and field formations may be advised accordingly.
8.
All pending disputes/ assessments may be finalised in view of the above
guidelines.
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