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2016 (10) TMI 733 - AT - Central ExciseClassification of goods - reusable Baby Cotton Nappies (diapers) - classified under Chapter Subheading 6101.00 of Central Excise Tariff as undergarments or under Chapter Subheading 4818.10 as napkins, towels etc? - Held that: - The Explanatory Notes to this Chapter Heading 61.11 says that in accordance with Note 6(a) to this Chapter the expression babies garments and clothing accessories applies to articles for young children of a body height not exceeding 86 cm. It also covers babies napkins. It is clear that both these classifications are not appropriate for the subject item namely reusable baby nappies/diapers made of cotton. The appellant is insisting classification under Chapter Subheading 4818.10 where toilet paper is covered. The subject item is not toiler paper; it is reusable baby diaper/nappy only. The items in Chapter Heading 48.18 are made of paper pulp, paper, cellulose wadding, etc., only. However the subject item is predominately made of knitted cloth of cotton and relevant classification for this item would, therefore, be Chapter Heading 61.11. The Item description given for Chapter Heading 61.11 clearly covers the subject items viz., baby diaper and baby nappy. Chapter Heading 61.11 covers babies garments and clothing accessories and when these are made up of cotton, they would fall under Chapter Heading 6111.20 only. Consequently the subject item deserves classification under Chapter Heading 61.11 only. The lower Revenue authorities decided classification in Chapter Heading 61.01 but right classification for the subject item is Chapter Heading 6111.20. The duty payable, if any, therefore would be computed by classifying the goods under Chapter Heading 6111.20 of Central Excise Tariff. Period of limitation - Held that: - duty of Central Excise, if any, cannot be levied for the period beyond one year from the date of show-cause notice. The matter deserves to be remanded to the original adjudicating authority for computation of duty, if any, for the period of one year prior to the date of show cause notice; it shall be decided by the original adjudicating authority within a period of three months from the receipt of this order by giving opportunity of personal hearing and that of production of necessary documents, if any - matter remanded - appeal disposed off.
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