TMI Blog2014 (7) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... se Tariff is identical to heading 6306 of the HSN. In terms of HSN explanatory notes to HSN heading 6306, tarpaulins are used to protect goods stored in the open or loaded in ships, wagons, lorries, etc. against bad weather, that they are generally made of coated or uncoated man-made fiber fabrics, or heavy to fairly heavy canvas (of hemp, jute, flex or cotton) and are waterproof, that tarpaulins are generally in the form of rectangular sheets, hemmed along sides and may be fitted with eyelets and that the Tarpaulin which are specially shaped (e.g. for covering hayricks, decks of small vessels, lorries etc.) also fall in this heading provided they are flat . The canvas Tarpaulins, in question, are specially shaped for different model of lor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dt. 05.12.07 was issued to the appellant as well as to their partner Sh. Sudhir Kumar Aggarwal for:- (a) demand of Central Excise duty of ₹ 33,41,168/- for the period from Dec,'06 to Oct.'07 along with interest thereon and under section 11AB of the Central Excise Act, 1944; (b) imposition of penalty on the appellant firm under section 11AC of the Central Excise Act, 1944; and (c) imposition of penalty under Rule 26 of Central Excise Rules, 2002 on Sh. Sudhir Kumar Aggarwal. The Show Cause Notice also sought confiscation of 131 Pcs. of Tarpaulin canopy and 1350 Pcs. of tool bags which had been seized. 1.2 The Show Cause Notice was adjudicated by Additional Commissioner vide order-in-original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are covered under heading 6307, that all these items are fully exempted from duty under Notification No. 30/2004-CE dt 09.07.2004, as the same are textile items of Chapter 63 and the appellant during the period of dispute were not availing input duty Cenvat Credit, that the main item canvas canopy/Canvas Tarpaulin specially designed for various types of vehicles are specifically covered under heading 6306 and the same cannot be treated as part/accessories of motor vehicle under heading 8708 , that according to the HSN Explanatory Notes to Chapter heading 6306, this heading covers tarpaulins which are used to protect goods stored in the open or loaded on ships, wagons, lorries etc. against bad weather, that they are generally made of coated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout any basis, as the tarpaulin canopies are not three dimensional but are flat, that tool bags and webbing equipment are made of textile material and hence are classifiable under heading 6307 and would be fully exempt from duty under Notification No. 30/04-CE and that in view of the above, the impugned order is not sustainable. 4. Sh. Pramod Kumar, the learned Jt.CDR, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and emphasized that the canvas canopies which are specially designed for different model of lorries are not flat and hence the same have to be treated as accessories of motor vehicles and accordingly would be classifiable under heading 8708 and hence the same would not be eligible for ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loaded into open lorries of different models. All tarpaulins are covered by heading 6306 of the Central Excise Tariff. This heading of Central Excise Tariff is identical to heading 6306 of the HSN. In terms of HSN explanatory notes to HSN heading 6306, tarpaulins are used to protect goods stored in the open or loaded in ships, wagons, lorries, etc. against bad weather, that they are generally made of coated or uncoated man-made fiber fabrics, or heavy to fairly heavy canvas (of hemp, jute, flex or cotton) and are waterproof, that tarpaulins are generally in the form of rectangular sheets, hemmed along sides and may be fitted with eyelets and that the Tarpaulin which are specially shaped (e.g. for covering hayricks, decks of small vessels, l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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