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TMI Blog2018 (11) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... rted blankets and declared the same as blankets and classified the same under chapter Heading No. 63014000 whereas, the Revenue is of the view that the said blankets are classifiable under Chapter Heading 60019200. In view of this, a show cause notice was issued to the respondent for classifying the goods imported by the appellant under chapter Heading 60019200. The ld. Commissioner adjudicated the matter and held that the correct classification of the said goods is under chapter Heading 63014000 and dropped the charges against the respondent. Against the said order, the Revenue is in appeal before us. 3. The sole ground for filing the appeal by the Revenue is that the goods in question do not fall in the definition of "Made Up" as per Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted fabrics, impregnated, coated, covered or laminated, or Chapter 59. However, knitted or crocheted pile fabrics, impregnated, coated covered or laminated, remain classified in heading 6... Further, Chapter Notes to Chapter 63 of the Customs Tariff Act, 1975 reads as follows:- 1. Sub Chapter I applies only to make up articles of any textile fabric. 2. Sub- Chapter I does not cover; (a) Goods of Chapters 56 to 62; or (b) Worn clothing or other worn articles of heading 6309." 7. We further take note of the fact that in the impugned order the ld. Commissioner has observed as under: "4.7. I observed that the SCN has sought to rely upon the clause (a) above by stating that the made ups have to be cut otherwise than into squares or recta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the goods have attained the characteristics of blanket, though unfinished, therefore, the impugned goods would be appropriately covered under clause (g) as knitted or crocheted to shape and presented as separate items, therefore, fall under Chapter heading 6301 and not as 'knitted pile fabrics' under chapter heading 6001. 4.8. Further, I have also gone through the HSN Explanatory Notes to Chapter 63 and find that it clearly lays down that this heading includes fabrics in the piece which, by the simple process of cutting along defined lines indicated by the absence of weft threads, maybe converted into separate articles having the character of finished blankets or travelling rugs. Thus, the HSN explanatory notes also support my findings a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent characteristic/designs have been cut at specific lines in such a way that they have specific designs which imparts them a specific character. If they are treated as knitted pile fabric. cutting them further would result in losing their identity as well as the marketability. Therefore, as per the explanation given in the HSN, it is safe to say that product in question is a fabric knitted or crocheted to shape, therefore, exclude from the purview of Chapter 60 in terms of above mentioned HSN explanation. 4.10 I also see that both the Noticee as well as the department has relied upon the General Rules for the interpretation of this Schedule (GIR). I observe that where department in the SCN has emphasized upon the importance of Section not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more correct course to deal with a question of construction of statute is to take the words themselves and arrive, if possible, at their meaning without, in the first place, reference to cases or theories of construction..." Since the HSN note dealing with tariff heading 6301 clearly mentions that it includes fabrics in the pieces which, by the simple process of cutting along defined lines indicated by the absence of weft threads, may be converted into separate articles having the character of finished blankets or travelling rugs, I find that in the instant case, where the impugned goods are in pieces of standard size of length and breadth, are printed & knitted and these cannot be treated as fabrics, therefore, would fall under the ambit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er have shown such a willingness to carry out such processes to render the impugned goods into finished blankets. * HSN explanatory notes to chapter 60 exclude the fabrics knitted or crocheted to shape; * Note 7(g) of Section XI which defines the expression "Made up" clearly covers knitted or crocheted to shape and presented as separate items. * HSN explanatory notes to Chapter 63 covers fabrics in the piece which by the simple process of cutting along defined lines indicated by the absence of weft threads, may be converted into separate articles having the character of finished blankets or travelling rugs. The impugned goods are already fabrics in piece cut along the defined lines so as to retain the pattern of design." 11. We do ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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