R.S. Industries, Paper Conductors, ... vs Cce on 29 November, 2002
2. Shri Parveen Sharma, learned Advocate, submitted that the Appellants manufacture P.U. Foam sheets, Composite sheets, Taped PU Foam sheets and cushions; that the process of manufacture in brief is that PU Foam Blocks are obtained by chemical reaction from inputs namely Polyol and Isocyanates these blocks are thereafter cut into blocks of regular geometrical shape by removing side/top/bottom skins; these Blocks are further cut into specific dimensions to result in PU foam sheets; that PU Foam sheets in dispute have the dimensions as 36" x 72" x 4"; that in some cases self adhesive textile tape is affixed on the sides which bear the Brand name of the appellants and are described as Taped PU Foam sheets; that cushion in dispute are nothing but PU Foam sheets of smaller dimensions, i.e. 20" x 18" x 4"; that these sheets are generally used by the customers as Mattresses after covering them with textile material or the cloth covers and cushions are used as sofa seats by the customer after covering the same with textile material; that from their factory the goods are cleared in the form of PU Foam sheets only without any textile covers. The learned Advocate, further submitted that the impugned goods are classifiable under Heading 39.21 only even if they become articles ready for use; that PU Foam sheets are not used as Mattresses as such but only after covering the same with textile material and covers, etc.; that what is relevant for classification of a product is the form in which it is cleared from the factory of manufacture; that since the product in question are bare PU Foam sheets when they are cleared from the factory of the appellants they are classifiable under sub-heading 3921.11. He relied upon the clarification issued by Central Board of Excise & Customs vide letlter dated 17-12-91; that the Board under this letter has circulated a copy of letter dated 25-7-91 received from Nomenclature and Classification Directorate of Customs Cooperation Council, Brusesels wherein it has been clarified that Mattresses of expanded foam or sponge rubber, made by moulding process would be classified under Heading 94.04 and expanded Polyurethane sheets, merely cut into rectangles would be classified in C.C.C.N. Heading 39.01, despite the fact that they were intended for use as Mattresses; that Meerut Commissionerate issued a Trade Notice No. 4/93 dated 18-1-93 mentioning therein that Polyurethane Foam sheet obtained by cutting of PU Foam Blocks for use as Mattresses will merit classification under Heading 39.21 of the Central Excise Tariff. The learned Advocate contended that these two clarifications are very specific to the product in dispute and the department is bound by these clarifications. Reliance has been placed on the decision in the case of Paper Products Ltd. v. CCE, 1999 (112) E.L.T. 765 (S.C.)