S.L. Peeran, Member (J)

1. In both the appeals, common question of law and facts arises. Hence, they are taken up together for disposal as per law.

2. The appellants in C/Appeal No. 1426/91-C imported Rubber blankets with description in the invoice as 'Reeves Vulcan 714 Compressible blankets 38-1/2" x 26-7/16" 3 ply with bars'. They filed bill of entry for classification under Chapter Heading 4008.21 of CET and claimed benefit of Notification No. 192/80 dated 26-9-1980. The same was cleared by the Customs House. However, a short levy demand notice dated 5-6-1990 was issued for reclassification of the item under Heading 4016.19 of C.E.T. for levy of CV duty as the item had end fittings (bars) and is stated to be in ready for fitment condition. The appellants vide their reply dated 4-8-1990, contended that the item is in the form of rectangular rubber sheets. The provisions of the bars at the end does not make it anything other than a rectangular rubber sheet. The bars are provided mainly to protect the ends of the rubber sheets to ensure proper fitment while use in the machine. The description 'rectangular' rubber sheet under Heading 4008 is more specific than 'other articles of vulcanised rubber other than hardened rubber' under Heading 4016; which is a residual one. Therefore, they claimed that the classification under Heading 4008.29 is proper and correct.

3. The Asstt. Collector held that the goods imported are not mere sheets of rectangular shape but are sheets fitted with metal bars at the ends. The Asstt. Collector relied on Note 9 to Chapter 40, C.E.T. which states that the expression 'plates, sheets' apply to 'plates, sheets etc. of regular geometric shape uncut or simply cut to rectangular (including square) shape, whether or not having the character of articles and whether or not printed or otherwise surface-worked but not otherwise cut to shape or further worked and hence rejected their contention. The learned Collector (Appeals) has upheld these findings and has also held that the fact that metal strips are fixed at the 2 edges of the rubber sheets would mean that the rubber sheets have been subjected to a process which can be treated as further work having been carried out on the rubber sheets. Therefore, the classification under Heading 4016 of C.T.A. was upheld.

4. In C/Appeal No. 1663/91-C, the item is described in the bill of entry as 'Rubber blankets' and Spare parts for web offset press. The goods were cleared under Heading 4008.21 of C.E.T. with benefit of Notification No. 192/80 read with No. 110/89. In this case also, a short levy demand notice dated 27-6-1990 for reclassification under Heading 4016.99 of C.E.T. for CV duty @ 15%. Their claim was rejected by both the lower authorities.

5. We have heard Sh. Kunhi Krishnan, learned Consultant for the appellant and Sh. L.N. Murthy learned DR for the Revenue. It is contended by the learned Consultant that the imported item is a special rubber sheet and a counter sheet with an aluminium gripper fixed on it. This aluminium gripper is known as 'V bars or 'Z' bars. The blankets are without fittings. The counter sheet is only to protect the blankets. The aluminium grippers (L Bars) on the rubber blankets are only to protect the edges from, smudging, as precision at the edges are very essential for fixing the blankets to the machine properly for precision printing. It is further contended that the item is simply cut to rectangular shape not further worked and not having the character of an article. Only aluminium grippers are at the edges and there are no fittings and that they have not undergone any manufacture and that there is no transformation into a different commodity. He contended that only if there is a transformation with a different commodity, it amounts to manufacture and it is only then it could be considered as an article of rubber. He relied on the term 'working as appearing at page 1450 of 'Webster Comprehensive' which states 'working' -

"1. Engaged a