- (1.) BOTH these Appeals are being disposed of by this common Judgment.
(2.) BRIEFLY stated the facts are as follows : The Appellant manufactures textile hose pipe which are lined with rubber. In respect of the hose pipe there also appears to be a dispute regarding classification. But we are not concerned with that dispute in these Appeals. In these Appeals the dispute is whether the rubber latex solution used by the Appellants, to line those hose pipes, falls under Tariff Item No. 40.01 or 40.05. The Appellants had on 1-4-1986 filed a classification list classifying the rubber latex solution under Tariff Item No. 40.05. Thereafter, a sample was taken for chemical analysis by the Superintendent of Central Excise. By a letter dated 3-4-1986 the Appellants set out the raw material used in the manufacture of this rubber latex solution. As per the letter the raw material used are as follows : JUDGEMENT_4341_AIR(SCW)_2004Html1.htm On 22-5-1986 the Appellants filed a second classification list. They again classified the product under Tariff Item 40.05. However, the Appellants claimed benefit of Notification No. 250/86, dated 11-4-1986. By this Notification rubber latex in the form of liquid, paste or dispersions falling under Tariff Item No. 40.01 was exempt from the whole of excise duty leviable thereon. A show cause notice was issued to the effect that the Appellants were not entitled to the benefit of Notification No. 250/86 as their product fell under Tariff Item No. 40.05. The Assistant Collector by his order dated 7-10-1986 held that the product was classifiable under Tariff Item No. 40.05. It was held that the benefit of the Notification was not available.
(3.) THE Appellants filed an Appeal before the Collector (Appeals). During the pendency of the Appeal, the Appellants got the product tested for a second time. THEy obtained the second test report. On 22-2-1988, a Trade Notice was also issued to the effect that rubber solution manufactured by dissolving natural rubber in organic solvent would not fall under Tariff Item No. 40.01 or 40.02. On 17-4-1989 the Collector (Appeals) allowed the Appeals and held that the product was classifiable under Tariff Item No. 40.01. The Department filed an Appeal to Customs, Excise and Gold (Control) Appellate Tribunal (for short 'the Tribunal'). The Tribunal has by the impugned judgment allowed the Appeal and held that the product is classifiable under Tariff Item No. 40.05.;