Letter No. 93/8/88-CX.3 Dated 6-9-1998

Classification of articles of vulcanized rubber.- It has been decided that foam rubber lubricating pads, supplied to railways, would be appropriately classifiable as ‘articles of vulcanized rubber’ under sub-heading No. 4016.11 of the Schedule to the Central Excise Tariff Act, 1985. The block of cellulose neoprene rubber, the core material, would be appropriately classifiable under sub-heading No. 4008.11 of the aforesaid Schedule.

2. If the goods classifiable under sub-heading number 4008.11 are used in the factory of their production in the manufacture of dutiable goods falling under sub-heading No. 4016.11, such goods will remain exempt from payment of duty. Even if, duty is paid on goods falling under sub-heading No. 4008.11 used in the manufacture of dutiable goods falling under sub-heading No. 4016.11, the amount of duty so paid will be available as Modvat credit towards payment of duty on the final product.