TMI Blog2014 (12) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... eading 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, lorries etc.) also fall in this heading provided they are flat. The canvas Tar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vas canopy/Tarpaulin pieces were specially designed for vehicles of various models. The appellant were not paying any duty in respect of these items by availing the full duty exemption under Notification No. 30/2004-C.E., dated 9-7-2004. The Department was of the view that canvas canopy, tool bags and web equipment being manufactured by the appellant, are parts or accessories of motor vehicle classifiable under heading 8708 and would not be eligible for exemption under Notification No. 30/2004-C.E. It is on this basis that a show cause notice dated 5-12-2007 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 O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el for the appellant, pleaded that the appellant manufacture specially shaped canvas tarpaulin canopies for different models of lorries, tool bags and web equipment of textile material, that canvas canopies are made out of canvas tarpaulin, that the canvas canopies, though specially cut into shapes to cover goods loaded in open lorries of different models, flat not three dimensional, that while such tarpaulins meant for vehicles are covered under heading 6306, that the other items, tool bags and web equipments of textile material are covered under heading 6307, that all these items are fully exempted from duty under Notification No. 30/2004-C.E., dated 9-7-2004, as the same are textile items of Chapter 63 and the appellant during the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cable to this case are in this case the canvas tarpaulin sheets have just been cut into the required shape to cover the goods loaded in open lorries of certain models, that since tarpaulin canopies are correctly classifiable under heading 6306, the same would be fully exempt from duty under Notification No. 30/2004-C.E. as there is no dispute that the same are of textile material and no input duty credit has been taken, that the reason adopted by the Department for classifying this items as motor vehicles accessory under heading 8708 is without 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 woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N heading 63.05 and accordingly to HSN explanatory notes to this heading, the same covers textile bags and sacks of all kind for packing of goods for transport, storage, sale etc. Since both of these items are covered by Chapter 63, the same would be exempt from duty under Notification No. 30/2004-C.E., as no input duty Cenvat credit has been availed. 7. As regards the canvas canopies specially designed for lorries, we find that these canopies made from canvas tarpaulin, are basically the tarpaulins cut into special shapes for covering goods 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. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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