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2023 (7) TMI 490 - AT - CustomsClassification of export goods - Flexible Intermediate Bulk Containers - to be classified under Tariff Heading 39232990 or not - it was observed that for central Excise purpose the respondent had declared HS code of the subject goods under Chapter 39 and for the Customs purpose they declared HS Code under Chapter 63 - HELD THAT:- The decision in the matter of MESSERS CTM TECHNICAL TEXTILES LTD VERSUS UNION OF INDIA [2020 (12) TMI 1100 - GUJARAT HIGH COURT] Hon’ble Gujarat High Court, dealt with the issue and distinguished the matter from RAJ PACK WELL LTD. VERSUS UNION OF INDIA [1989 (9) TMI 120 - MADHYA PRADESH HIGH COURT] as item was made from HDPE Strips/Taps and not from the HDPE fabric - the Hon’ble Gujarat High Court found that item will be textile fabric if woven out of any material and same was not an issue before the Court in Raj Pack Well Ltd Vs. UOI case. The Hon’ble Court accordingly held that woven fabric will be textile, irrespective of the method of weaving through any technique or material used in weaving, which may also be cotton, silk, rayon, nylon or of other description or made out of any other material. When such material is woven into fabric, what comes into existence is textile. As such, while in the matter of Raj Pack Well Ltd Vs. UOI the input material for HDPE sacks was derived from HDPE strips/tapes/sacks - In the present matter, it is a factum of same being woven which, inter alia qualifies to make it textile - like in the matter of M/s CTM Technical Textiles Ltd Vs. UOI the matter was remitted back to have a relook into the CBEC Circular No. 8/92 dated 24.09.1992 and CBEC and Trade Notice No. 78/94 dated 09.05.1994. While doing so the appellate authority shall consider the parameters laid down by the Hon’ble Gujarat High Court in the aforesaid decision and also the relevant section notes and Chapter Notes relating to Chapter 39 as well as Section XI of schedule 1 of the Customs Tariff Act, 1975 as also the Chapter Notes relating to Chapter 54, 59, 60 and 63 to arrive at its decision, it shall also properly identify the product under dispute and whether the same is made from strips of up to 15mm or more. It is found that the EDI System indicates that both Flexible Intermediate Bulk Containers un-coated, as well as without mention of coating were imported during the relevant time, differential treatment may be required to be considered, if goods are different. Further while considering party’s classification relating to Central Excise Tariff, the existence of analogous provision under the Customs Act shall also be considered. The EDI System indicates that both Flexible Intermediate Bulk Containers un-coated, as well as without mention of coating were imported during the relevant time, differential treatment may be required to be considered, if goods are different. Further while considering party’s classification relating to Central Excise Tariff, the existence of analogous provision under the Customs Act shall also be considered. The observation relating to ‘textile’ of Hon’ble High Court of Gujarat in general, wherever relevant Chapter Notes and section notes are not available shall be duly followed. The matter is accordingly remanded for reconsideration - Appeal is allowed by way of remand.
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