Fibrotex vs Commissioner Of Central Excise, ...

The Supreme Court held that the rubber latex solution manufactured by the Appellants is classifiable under Tariff Item No. 40.05, not Tariff Item No. 40.01, due to the presence of accelerators and activators, which disqualifies it from the exemption under Notification No. 250/86. The Court emphasized that Chapter Note 5(a) prohibits classification under Tariff Item 40.01 for compounded rubber mixtures. Consequently, the benefit of the notification was denied, affirming the Tribunal's decision.