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TMI Blog1991 (9) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... llants classified the paper making felt under Heading 59.16/17 CTA, 1975, the Assistant Collector classified the goods under Heading 59.01/15 CTA. After the clearing the goods on payment of duty as classified by the Department at higher rate, the appellants filed a refund claim for excess payment of duty amounting to Rs. 70,684.75, claiming lower assessment on the ground that the paper making felt imported by them was of kind commonly used in machinery and eligible according to them to lower rate of duty under Heading 59.16/17 CTA. By his order dated 9-12-1986, the Assistant Collector of Customs, Refund Deptt., Bombay Customs House rejected the claim on the ground that the goods even according to the appellants were admittedly not endless a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fall within the ordinary meaning of the word 'textiles'. In that case which dealt with certain provision under the Punjab General Sales Tax Act, 1948, there was a reference to the classification of textiles under the Customs Tariff Act, 1975. The Supreme Court observed "if we look at the Customs Tariff Act, 1975, we find in Chapter 59 occurring in Section XI of the First Schedule that there is a reference to textiles fabrics and textile articles of a kind commonly used in machinery or plant and a Clause 4 of that Chapter provides that this expression shall be taken to apply inter alia to woven textile felts.....". The learned Counsel then referred to Chapter Note 4 of the CTA, 1975 and pointed out that it is aligned to the Brussel Tariff N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... down time of the machinery in fixing the felt on to the rollers. The fact remains that the felt in the present case has to be necessarily made endless before they can be used in paper making machine. With the advent of technology the felts are now available in flat form and it is required to be rolled like a tube before being placed on the machinery. Shri Jayanarayan Nair, the learned Departmental Representative appearing for the Department contended that Chapter Note 4 of CTA '75 is not strictly comparable in all respect with Explanation Note to BTN under Chapter 59 thereof. He pointed out that Chapter Note 4(a) of CTA '75 is for textile products (other than those having the character of the products of Chapter 59), whereas the BTN Chapte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only used in machinery or plant. 40% The Department has gone by the facts that the felt imported is not endless or tubular whereas the appellants' claim is that felt have always to be endless and they are manufactured and supplied either endless or open-ended. In the latter case the two ends have to be joined by a special technical method after mounting on the machine so that the felts become endless. It is found that the Department has not disputed the claim that the appellants are actual users of the material and that the felt imported is for use in their plant. The Chapter Note 4(iv) to Chapter 59 on which reliance have been placed by the lower authorities is also reproduced below :- "In Heading No. 59.16/17, the expression "textile f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at paper makers felt are tailor-made ready-to-install items supplied in certain sizes and substances according to individual needs of the paper mills. The present import is of Dryer Felt/Screen about 75 ft. long, 12 ft. wide and weighing about 165 kgs. From the foregoing discussions, it is, therefore, possible to conclude that classification of the paper maker felt imported in open-ended form under Heading 59.16/17 CTA as claimed by the appellants needs to be allowed because Chapter Note 4(a)(iv) of Chapter 59 covers woven textile fabrics, flat woven also and not only tubular or endless fabrics. The explanation of the appellants supported by the technical literature also goes to show that paper maker felt are tailor-made items supplied to p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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