2005 (10) TMI 307 - AT - Central Excise

Summary

Issues:
Eligibility of knitted/crocheted fabrics for exemption under Notification No. 109/86-C.E.

Analysis:
The appeals before the Appellate Tribunal CESTAT, Mumbai arose from a common order by the Commissioner of Central Excise (Appeals) concerning the eligibility of knitted/crocheted fabrics for exemption under Notification No. 109/86-C.E. The issue revolved around whether the goods in question, identified as printed/crochet pile fabrics, fell under the purview of Chapter 60 of the schedule to CETA, 1985, thereby qualifying for the benefit of exemption.

Upon hearing the ld. SDR and examining the records, the Tribunal noted that the Notification No. 109/86 granted exemption to specific types of fabrics falling under Heading 58.01 or 60.01, including Knitted or Crocheted fabrics. The adjudicating authority had initially determined that Knitted/Crocheted fabrics were not covered under Chapter 60 based on Chapter Note 1(c) of Chapter 60. However, a closer analysis revealed that the same note specified that Knitted/Crocheted and Chenile pile fabrics should be classified under Chapter 60. As the goods in question were pile fabrics, they were deemed to fall under Chapter 60.01, particularly under Chapter heading 6001.12 due to being made of Nylon fabrics, as claimed by the respondents. Consequently, the Tribunal concluded that Knitted printed fabrics falling under Chapter 60.01 were indeed covered under Notification No. 109/86, rendering the goods eligible for the benefit of exemption.

In light of the above findings, the Tribunal determined that there were no grounds to interfere with the Commissioner's order and thus upheld the decision, consequently rejecting the appeals brought before it. The judgment reaffirmed the eligibility of the knitted/crocheted fabrics for the exemption under the relevant notification, providing clarity on the classification and applicability of the exemption provisions in this specific context.