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2014 (9) TMI 682 - AT - Central ExciseClassification of goods - appellants engaged in the manufacture of “hook and loop tapes” of nylon and polyester yarn - Classification under Heading 5806.10 or under sub-heading 9806.90 - Imposition of penalty - Held that:- tapes in question admittedly have selvedges on both the sides, which are discernible from the rest of the fabrics and they prevented any yarn from unravel from other side of the woven fabrics. If according to the observations of the adjudicating authority himself the tapes in question have selvedges, at the unfinished stage and there is no finding that such selvedges were subsequently cut before finishing the fabrics in question, it has to be held that the product was manufactured with selvedges on both the sides. Government of India, who was approached by the units manufacturing hooks and loop tape fasteners for imposition of Anti- Dumping Duty has passed the order 14/24/2003-DGAD, dated 7-6-2005. Vide the said order it stands clearly held that the goods in question fall under Heading 5806.10 and not under Heading 9606.90 - There is clear finding of the fact by the Ministry of Commerce and Industry, while giving its final finding vide order dated 7-6-2005 that hooks and loop tapes are classifiable under 58.06. The said finding stand accepted by the Government of India and carry a lot of weight. It stands observed in the said order that there are 4 producers of domestic like product in India. The application stand filed by M/s. Sky Industries Ltd. and the other producers i.e. Magic Fasteners Pvt. Ltd., Delhi and M/s. Siddharth Filament Yarn Ltd. and M/s. Siddharth Magic Tape Pvt. Ltd. have supported the application. Accordingly, the authorities has recommended the Anti-Dumping Duties to be imposed by the Central Government on all imports of narrow woven fabrics having pile woven made up of man-made fabrics. They are also known as hook and loop tapes fasteners or Velcro tapes or fasteners, tapes falling under Customs Heading 58.06. Proper classification of hook and loop tape fasteners of nylon and polyester yarn being manufactured by woven fabrics would fall under Chapter Heading 58.06 of the Central Excise Tariff and not under Chapter Heading 98.06 as held by the Commissioner. Accordingly, the impugned orders classifying the product under Chapter Heading 98.06 and confirming demands and interest and imposing penalties are liable to be set aside. Decided in favour of assessee.
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