TMI Blog1996 (9) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... classification list effective from 2-4-1986 claiming the classification of their product described as calendered fabrics in process (unhardened) under sub-heading 4005.00 and claimed exemption under Notification No. 71/68, dated 1-4-1968. The department alleged that calendered fabrics are not covered by sub-heading 4005.00 but are appropriately classifiable under sub-heading 5905.00 inasmuch as the calendered fabrics satisfy the condition 3(a)(i) of Chapter Note under Chapter 59. The department also alleged that since the product was not classifiable under Chapter 40 of the Central Excise Tariff therefore exemption contained in Notification No. 71/68 was not admissible to the assessee. Accordingly a show cause notice was issued to the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants also argued that the rubber content predominates in weight of their calendered fabrics which is more than 50% and since the fabrics are unvulcanised, they should fall under sub-heading 4005.00 and are therefore eligible to avail exemption under Notification No. 71/68 as amended. The Assistant Collector after hearing the submissions of the appellants held that the appellants manufacture rubberised fabrics and calendered fabrics weighing 1500 gms per square meter and in which rubber predominates in weight as per assessee s declaration; that as per Note 3 of Chapter 59 the product is rightly classifiable under sub-heading 5905. The Assistant Collector also held that arguments of the assessee and the case law cited covers cases un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant for the tariff introduced with effect from 1-3-1986. Reiterating the findings of the lower authorities the Ld. SDR prayed that the appeal may be rejected. 6. Heard the submissions of the ld. SDR and perused the case records and submissions in the grounds of appeal made by the appellants. We find that two issues arises for determination in the present appeal. The first issue is classification of calendered fabrics with effect from 2-4-1986 and the second issue is applicability of Notification No. 71/68 to the goods manufactured by the appellants. 7. From the records we find that the appellants have claimed classification of the goods under sub-heading 4005.00 whereas the department has held that the goods are classifiable under s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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