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2005 (9) TMI 15 - AT - Central ExciseClassification of the Carpets manufactured by the appellants - to be classified under Chapter sub-heading No. 5703.20 or under Chapter sub-heading No. 5703.90? - whether the Hessian cloth has to be separated for the purposes of the predominance test or not? - HELD THAT:- The Sub heading notes as reproduced above specifically indicates the situations when to include the base fabric and when not to include the base fabrics for the predominance test. Since Section Note to Section XI clearly laid down [(ii) of 3 on the last page] when to exclude and when to include the base fabric while determining the predominance test, it would not be permissible to exclude base fabric (Hessian cloth) in the appellants case, while determining predominance. Hence the predominance, test " appellant's products has to be done taking the product manufactured by the appellants as a whole and not separating the layers and then applying the predominance test. We would also note that sub-heading Note 2B(i) would apply only if the product is made up of textile materials and a non- textile material. The revenue's reliance on a single dealer's statement indicating that the appellant's jute carpet are known in the market as "Synthetic Carpet" will be of no consequence as the said statement is unsubstantiated by further evidence in any form and contrary to the description of the goods in sales documents. Further, it has been the intention and practices of the Government that products manufactured partly out of jute also has to be encouraged through exercise exemptions. This is clear from the fact that the Notification No. 50/90 as amended by notification No. 93/94 treats carpets containing 35% of jute also as "jute carpets" eligible for the exemption. The said notification does not specify that only material at the exposed surface should be taken into account for determining the percentage of jute in the carpet. Nor is such a determination practicable. Thus, the Carpets manufactured by the appellants would be appropriately classified under Chapter sub-heading No. 5703.20 as carpet "of jute" and not as "other" carpet under 5703.90 - appeal allowed.
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