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2016 (1) TMI 919 - CESTAT CHENNAI

2016 (1) TMI 919 - CESTAT CHENNAI - 2016 (343) E.L.T. 201 (Tri. - Chennai) - Classification - DHPE warp knitted fabrics, HDPE ropes, strips, rachal knitted fabrics for agro products and wastes made out of plastic strip less than 5 mm in width - Held that:- Chapter Note 1A to Chapter 54 was inserted with effect from 29.06.2010 with retrospective effect. The products under question in the present appeals are not plastic woven bags. These are knitted fabrics used as agro net. Hence distinct from th .....

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005. Further, the ISI standard notified by Bureau of Indian Standards for agro textiles shade nets for agriculture and horticulture and as per this standard the above textile fabrics are made from tapes of 1.7 mm width. And in the present case the width of the tape is of 1.5 mm and the goods manufactured by the appellants are classifiable as textile fabrics and articles of fabrics rightly classifiable under chapter heading 60059000 and the strips (HDPE) not exceeding 5mm is classifiable under 54 .....

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07 The brief facts of the case are that the respondents are manufacturers of HDPE Knitted fabrics falling under Chapter 3926 and availed SSI exemption during the period 2005-2006 under Notification No. 08/2003 dated 01.03.2003. The Commissioner in his Order-in-Original dropped the proceedings initiated in the Show Cause Notice and held that the goods manufactured by the respondents are Knitted fabrics and are different from woven fabric and are eligible for exemption given under S.No.2 of the Ta .....

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attracts duty under Section 11A of CEA, 1944 for the period from 01.04.2006 onwards. Both the Revenue and assessee have filed appeal against the adjudication order No. 45/2008 dated 07.10.2008. The Commissioner (Appeals) in his order confirmed the classification of all the three products under Chapter 39. Aggrieved by this, the appellants preferred appeals. 4. The Ld. Advocate appearing on behalf of the assessees submitted written synopsis. He submits that they are manufacturers of HDPE warp Kn .....

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pter 39 merits classification as articles of plastics and their products are textile fabrics merits classification under chapter 54,56 and 60. 5. Ld. Advocate reiterated the findings in the adjudication order and especially para 21 of the O-in-A dated 31.08.2009summarized the classification of all the products in detail. He submits that as per Section Note 1(g) of Section XI of CETA 1985 only plastic strip or the like more than 5mm is classifiable under chapter 39 are excluded from textile and t .....

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Explanatory note under Chapter 54, which also consider strip and the like not exceeding 5 mm to be covered under 54.10. Hence the plastic material out of which strip of less than 5 mm made by the appellant is a synthetic material as per chapter note 1 of chapter 54. Since the Central Excise Tariff is in line with HSN explanatory note relevant for the classification of the products. Further, he submitted a copy of the Textile Committee Report dated 05.03.2013,, SASMIRA report dated 01.03.2013 and .....

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ics are classifiable under 6005 - reported in 2014-indlaw-CESTAT-1084. He further submits that the Hon ble High Court order in the case of Raj Packwell Ltd., which relates to the period prior to 1990 and also pertains to HDPE strips and HDPE sacks. He also relied upon ISI standard for Agro textiles and shade nets for agriculture and horticulture purposes. As per the ISI Std. the maximum width permissible is 1.7 mm and as per ISI standard also, classified under textile products. On the Revenue ap .....

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ubmits that as per the Boards order and the Honble High court of Madhya Pradesh decision in the case of Raj Packwell Ltd. 1990 50 ELT 201 (M.P) goods are rightly classifiable under Chapter 39 as articles of plastics. She drew attention to Section note 1 (h) and note 2 (a) of Section 11 of CETA and as per Section note, articles of plastics falling under chapter 39 are excluded from textile and textile articles. She further submits that as per section note 2A predominance of material is plastics .....

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nder articles of textile articles. He submits that the department never disputed the predominance of material in their case. In counter, the Ld. AR submits that Chapter Note 1 (h) and 2 A of Section 11 relates to knitted or interknitted fabrics with plastics. Section note and chapter note of Chapter 59 has to be read together and also interpretative Rule 1A. As per chapter note 2A of Chapter and 2B of chapter 59, clearly listed various kinds of fabrics. Section note alone cannot be read in isola .....

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ghtly classifiable under 56079010. 8. Heard both sides and perused the records. The issue involved in the present appeals is regarding classification of DHPE warp knitted fabrics, HDPE ropes, strips, rachal knitted fabrics for agro products and wastes made out of plastic strip less than 5 mm in width. There were different practices for classification of plastic woven bags within the country. The Madhya Pradesh High Court in the case of M/s. Raj Packwell Ltd. held that such bags are classifiable .....

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rent width not exceeding 5mm. Note 2 (p) to Chapter 39 excludes textile and textiles article from Chapter 39. HSN Explanatory Notes 54.04 explains Synthetic Textile materials of apparent width not exceeding width 5mm as under:- Strips and the like, of synthetic textile materials. The strips of this heading are flat, of a width not exceeding 5mm, either produced as such by extrusion or cut from wider strips or from sheets . Chapter Note 1A to Chapter 54 was inserted with effect from 29.06.2010 wi .....

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