TMI Blog2018 (1) TMI 1458X X X X Extracts X X X X X X X X Extracts X X X X ..... rders and have not discussed any detail on the basis of which the applicant's products can be classified under 5604. Considering the nature of the product, its size, its contents and its manufacturing techniques, the Government feels that the applicant's product exported under shipping bill No. 1945690, dated 27-9-2012 are not classifiable under 5604 which only covers rubber thread and cord, textile covered, textile yarn and strip and the goods of Heading 5404 or 5405, impregrated, coated, covered or sheathed with rubber or plastics and not the goods like narrow woven fabrics exported by the applicant. Accordingly, the applicant is eligible to avail drawback of duty at the rate applicable to the goods of S. No. 5806 of Drawback Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso informed that they were registered with Central Excise and their product had been classified under Heading No. 5806 and the same was given in the shipping bill dated 27-9-2012. But despite of all explanation from the applicant, a show cause notice dated 14-11-2012 was issued to disallow duty drawback of ₹ 25260/- and to impose penalty on the applicant under Sections 113 and 114 of the Customs Act. During personal hearing held on 15-3-2013, the applicant again explained that as per HSN Explanatory Notes and Coding system published by WCO the expression narrow woven fabrics means warp and weft fabrics in strips of width not exceeding 30 cm, whether woven as such or cut from wider pieces provided with selvedges on both edges. However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Commissioner (Appeals) and restore the drawback originally claimed by the applicant. 4. A personal hearing was held in this case on 12-12-2017 and it was attended by Ms. Vandana Singh and Shri B.K. Singh, the Advocates. Ms. Vandana Singh argued at length touching upon the background of the case as discussed above and advanced several legal arguments to emphasize that their product is narrow woven fabrics classified under S. No. 5806 of Drawback Schedule and both Deputy Commissioner as well as Commissioner (Appeals) have failed to appreciate their submissions in this matter before passing their erroneous orders. However, no one appeared for the hearing from the respondent side. 5. On examination of the OIO and the OIA, it is ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24, Reckitt Colman of India Ltd. v. Asstt. Collector of Central Excise, Hyderabad [1994 (72) E.L.T. 263 (A.P.)]. The applicant has claimed that their product narrow woven fabrics is covered under first part of the description of CTH 5806 which is narrow woven fabrics other than goods of Heading 5807 and not under second part of the description which is narrow fabrics consisting of warp without weft assembled by means of an adhesive (Bolducs) . This claim is sought to be supported by HSN explanatory notes to Chapter 58 as per which narrow woven is defined as warp and weft fabrics in strips of a width not exceeding 30 cm, provided with selvedges on both edges. They have also placed reliance on notes of Section XI and Chapter Notes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pile fabrics, typewriter ribbon cloth, Newar cotton and others also substantiate the above view that 5806 covers both narrow woven fabrics as well as narrow fabrics consisting of warp without weft. Thus the most crucial factor for classification of any goods under sub-heading 5806 is that the goods should be either narrow woven fabric or narrow fabric which is satisfied in this case. As per Chapter Note 5 of Chapter 58 and HSN Explanatory Notes of Chapter 58, for the purpose of Heading 5806 the expression narrow woven fabrics means woven fabrics of a width not exceeding 30 cm, whether woven as such or cut from wider pieces, provided with selvedges on both edges or tubular woven fabrics of a flatten width not exceeding 30 cm etc. The applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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