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2018 (2) TMI 1439 - AT - Central ExciseClassification of goods - textile fabric combined with PU foam as textile fabric laminated with polyurethane foam - whether classified under CETH 5903 of CETA or under Chapter 39? - benefit of N/N. 29/2004-CE dated 9.7.2004 as amended by N/N. 10/2005-CE dated 1.3.2005? - Held that: - It is stated in the Circular dated 13.12.1995 that the process of manufacturing PVC leather cloth involves coating of a paste of plastic material (PVC) on one side of the base fabric. In this case, the plastic is not combined with the textile but is coated on textile fabric to form final product. Textile fabrics does not act as reinforcing material. Such fabrics are used for upholstery and can take sharp bends without cracking. After analyzing the applicability of Chapter Note 2(a) of Chapter 59, Section Note 1(d) of Section XI as well as Chapter Note 2(k) under Chapter 29 together with the HSN Notes, the Board has concluded that the product PVC leather cloth also known as rexine cloth has to be correctly classified under Chapter 59.03 of CETA, 1985. The SCN alleges that the respondent clears PU foam sheets and polyester granules (for laminating the PU foam) to their job workers who convert the granules into yarn and knit the yarn into fabrics and use it to laminate the PU form sheets. In fact, the respondent clears PU foam to their job workers who cut the same into the required size and laminate the PU foam on textile fabric. The respondent does not send any polyester granules to the job worker. After lamination the product cleared from the job worker is called as textile fabric laminated with PU foam and not PU material laminated for textile as contended in the SCN. Appeal dismissed - decided against Revenue.
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