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2016 (10) TMI 646 - AT - Central ExciseDemand of CENVAT credit availed - classification of goods - non-woven textile fabrics falling under CETA 56.03 or classified under 39231090 - reliance placed in the decision of case of PORRITTS & SPENCER (ASIA) LTD. Versus STATE OF HARYANA [1978 (9) TMI 72 - SUPREME COURT OF INDIA] - Held that: - The judgement was given while interpreting classified under Punjab General Sales Tax. While the manner of classification in the Punjab General Sales Tax Act was not the same as the manner of classification adopted in the Central Excise Tariff. The said Central Excise tariff is a very advanced scientific method of classification. The said tariff is backed by the explanatory notes which is explain the scope of each heading. The HSN explanatory notes to Chapter Heading 5603 specifically covers non-woven fabrics. The heading 5602 of the Central Excise Tariff specifically covers felt. The decision in the case of Porritts & Spencer (Asia) Ltd. was given in respect of felt. Felt is clearly classifiable under heading 5602. Thus, the reliance placed on the said decision in the show-cause notice is totally irrelevant. The HSN clearly recognize non-woven textile manufactured by thermal/mechanical bonding of yarn as textile falling under Chapter 56 - demand not justified - appeal allowed - decided in favor of appellant.
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