2006 (7) TMI 398 - AT - Central Excise

Summary

Issues: Classification of tarpaulin under Chapter Heading 59.06 or 59.02 of the Schedule to the CETA, 1985.

The judgment revolves around the issue of the classification of tarpaulin manufactured by the appellants under Chapter Heading 59.06 or 59.02 of the Schedule to the CETA, 1985. Despite the absence of representation from the appellants, the Tribunal considered the matter based on the records and arguments presented by the learned SDR. The Tribunal noted that the appellants had previously raised the classification issue, leading to a remand by the Tribunal for de novo consideration by the Commissioner of Central Excise (Appeals).

The Commissioner (Appeals) relied on a test report indicating that the base cotton fabric of the tarpaulin was heavily impregnated, with the impregnation visible to the naked eye. Applying Note 5(a) to Chapter 59, the Commissioner classified the product under CET sub-heading 5906.90. The appellants, however, cited a Tribunal order in a different case to support their classification under Chapter Heading 52.06. The Tribunal distinguished the two cases, emphasizing that in the present case, the impregnation was visible, leading to a visible layer formation, which was not the case in the precedent referenced by the appellants.

Based on the test report and the Commissioner's findings after personally inspecting the product, the Tribunal found no fault in the classification of the tarpaulin under CET sub-heading 5906.90. Consequently, the Tribunal upheld the impugned order and dismissed the appeal, affirming the classification determined by the Commissioner (Appeals).