Circular No. 13/90-CX.3 Dated 19-3-1990

Central Excise - Classification of worn-out Rubber air bags discarded after use in the manufacture of tyres - Clarification regarding.- Doubts has been raised regarding the classification of worn-out Rubber air bags which are .discarded after use in the manufacture of tyres, whether classifiable under Sub-heading 4004.00.

2. The matter has been examined. Sub-heading No. 4004.00 of CET covers “waste, parings and scrap of rubber (other than hardened rubber) and powders and granules obtained therefrom”. Note 6 to Ch. 40 amplifies the expression “waste, parings and scrap” to include rubber waste, parings and scrap from the manufacture or working of rubber and rubber goods definitely not useable as such, because of cutting up, wear or other reasons. The worn-out rubber air bags, after they are discarded, are goods which cannot be put to further use for which such goods are meant. Therefore, in view of Ch. Note 6 to Ch.40 such worn out rubber air bags, whether cut or uncut, would appropriately merit classification under Sub-heading No. 4004.00.

3. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised.

4. All pending assessments may be finalised on the above basis.

[F. No. 99/9/90-CX.3]