I am directed to say that doubts have been expressed regarding correct classification of Rubberised Tyre Cord 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 weftless 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.