2003 (7) TMI 333

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..... er : Gowri Shankar, Member (T)]. - The application is for waiver of deposit of duty of Rs. 6.48 lakhs and penalty of Rs. 1.5 lakh demanded and imposed on the applicant on the ground that the terry towelling fabrics that it manufactured were classifiable in Heading 63.02 of the tariff and not, as claimed by the applicant, in Heading 58.02. 2. A request for adjournment is made on the ground .....

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..... s for bed linen, table linen, toilet linen and kitchen linen. The Explanatory Notes to the Harmonised System of Nomenclature includes among toilet linen the goods such as bath towels, hand or face towels, bath towels and beach towels. Therefore, ordinarily, terry towelling fabrics in running length would be classifiable in Heading 58.02 and towels in the piece would be considered to be made up art .....

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..... hand, the show cause notice dated 10-8-1999 issued to the applicant says that the fabric has "specific demarcations for identifying the individual towel/napkins piece." What this means is not clear. It could be interpreted to mean that only dividing threads are required to be cut. It could mean that the fabric is in running length and is to be cut and sewn to separate into towels. It is therefore .....

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