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2005 (5) TMI 159 - AT - Central ExciseClassification - HDPE fabrics laminated with LDPE and Kraft Paper - duty demand - Departmental circulars - Process of manufacture - HELD THAT:- In the present case, the goods are classifiable under Chapter 59 in view of the Circular dated 18-8-1989 of the Board wherein Board has dealt with the very same goods viz HDPE fabrics laminated with LDPE and kraft paper. It is well settled that circulars issued by the Board are binding on the departmental officers, even if it is inconsistent with the law/judgment. Hence, the circular dated 18-8-1989 was binding on the Revenue & should have been applied. In any case, the bags in question would be classifiable under Heading 63.01 as "other made-up textile articles," attracting then the same rate of duty as discharged, as applying Section Note 5 which defines 'made-up'. Since there is statutory definition of 'made-up', resort cannot be made to general understanding of 'made-up'. Note 5(e) defines 'made-up' means, assembled by sewing, gumming or otherwise. When the bags in question are assembled by cutting, gumming and stitching, then the bags in question satisfy the definition of 'made-up' given in Section Note 5(e) to Section XI of the Schedule. Since HSN General Explanatory Notes to Chapter 63. A perusal of these HSN Explanatory Notes to Chapter 63 and Heading 63.05 would clearly indicate that the bags in question would be made-up textile articles, as made of textile materials. Hence, the bags in question would correctly fall under Heading 63.05 of the HSN. The Central Excise Tariff Heading 63.01 is a consolidated heading, covering all goods covered by Chapter 63 of HSN Explanatory Notes. Therefore, such bags would fall under Heading 63.01 of the Central Excise Tariff. The US Customs Ruling dated 13-11-1991 produced by the appellant holds goods they classified such woven bags of polypropylene strips for packing onions under Heading 63.05 of HSN. Similarly, the Ruling dated 20-1-1995 classified bags made from polyethylene strips under Heading 63.05 would supplement the view on classification being arrived by us. In view of the findings arrived the matter is remitted back to the adjudicator to re-determine the demands, only, if any in terms of the above findings. Appeal allowed as remand in above terms.
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