Central Excise - Forwarding copy of the Order No. 10/93, dated 5-11-1993 regarding Classification of Grey cotton canvass cloth Cotton ducks, Cotton tyre cord fabrics and Cotton Belting fabrics - Central Excise - 27

Central Excise - Forwarding copy of the Order No. 10/93, dated 5-11-1993 regarding Classification of Grey cotton canvass cloth Cotton ducks, Cotton tyre cord fabrics and Cotton Belting fabrics Circular No. 27 Dated 5-11-1993 [From F. No. 52/2/92-CX.1] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Forwarding copy of the Order No. 10/93, dated 5-11-1993 regarding Classification of Grey cotton canvass cloth Cotton ducks, Cotton tyre cord fabrics and Cotton Belting fabrics . SECTION 37-B ORDER NO. 10/93. The trade has represented on the issue of lack of uniformity in the classification of grey cotton canvas, cotton ducks, cotton type cord fabrics and cotton belting fabrics. Such products have been classified either under chapter Heading No. 52.05 or under Heading No. 59.09 of the Central Excise Tariff Act, 1985 (henceforth referred to as tariff). 2. In one of such disputes, the CEGAT, New Delhi in the case of M/s. Simplex Mills Co. Ltd., Bombay v. U.O.I. vide Order Nos. E/150 to 161/92-D, dated 28-2-1992 has held that grey cotton, belting, duck and grey cotton canvas cloth are classifiable under Heading 59.09 of the CET as industrial fabrics. Against the said decision of the CEGAT in M/s. Simplex Mills Co. Ltd. has filed a writ petition before High Court, Bombay (Nagpur Bench). Earlier, Board has examined the problem relating to classification of 'cotton tyre cord fabrics' whether classifiable under Heading No. 52.05 or 59.09 of the CET and clarified vide Circular No. 22/88-CX.1, dated 10-8-1988, (F. No. 52/19/87-CX.1) that cotton tyre cord fabrics as such before rubberisation is still a fabric and would appropriately be covered by Heading No. 52.05 of the CET. 3. Lack of uniform classification of goods has brought in disparity in the pricing of the commodity by the manufacturers of such goods with consequent impact on sales and the market economy. Keeping in view the settled principle of law and pending final decision by Hon'ble High Court against the said decision by of CEGAT in the case of M/s. Simplex Mills Co. Ltd. v. U.O.I. is referred to supra and the fact that there is no uniformity in the classification of these goods, it would be expedient in the interest of administration of taxing statute to bring out uniformity in the assessment practice 4. Now, therefore, in exercise of the powers conferred under Section 37B of the Central Excise and Salt Act, 1944 (1 of 1944) (henceforth referred to as the Act) and for the purpose of ensuring uniformity in the classification of the said goods, the Central Board of Excise and Customs hereby orders that grey cotton canvas, cotton ducks, cotton tyre cord fabrics and cotton belting fabrics shall henceforth classified under Heading No. 52.05 of the CET. 5. This order shall not change the position for the past closed assessments. 6. The Board further directs that copy of this order be sent to all Collectors who shall issue appropriate trade notice and inform all officers employed in execution of the provisions of the Act.