TMI Blog2023 (6) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no test reports relied upon by the Department to claim that it is not of manmade textile material, the classification cannot be concluded under Chapter 39 as Articles for Conveyance or packing of goods made by other plastics . Both the Board Circular and DGFT have clarified that FIBC is classifiable under 6305 based on the HSN Explanatory Notes to Chapter 39. Further it is found in the case of CCE vs. Karur KCP Packaging P. Ltd. [ 2015 (8) TMI 1233 - CESTAT CHENNAI] , the Tribunal by relying on the Hon ble High Court s decision rendered in the case of Karur KCP Packings Ltd. vs. CC [ 2015 (9) TMI 976 - MADRAS HIGH COURT] , Board Circular and DGFT clarification, held that FIBC is rightly classifiable under 6305 32 00 and not under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned Chartered Accountant appearing on behalf of the appellant clearly distinguishes Chapter Heading 3923 and 6305, which reads as follows: Chapter Heading 3923: Articles for the conveyance or packing of goods, of plastics, stoppers, lids, caps and other closures of plastics 3923 10 Boxes, cases, crates and similar articles 3923 10 10 Plastic containers for audio or video cassettes tapes, floppy disk and similar articles 3923 10 20 Watch box, jewellery box and similar containers of plastics 3923 10 30 Insulated ware kg. 12% 3923 10 40 Packin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hapter Heading 6305 32 submits that this chapter specifically mentions Flexible intermediate bulk containers (FIBC) and relying on the HSN Explanatory Notes under this Chapter have claimed that their goods are rightly classifiable under 6305.32. Reliance is placed on Tribunal s decision in the case of Commissioner of Central Excise, Tiruchirappalli vs. Karur KCP Packaging Pvt Ltd.: 2016 (331) ELT 604 (Tri.-Chennai) wherein FIBC was classified under Chapter heading 6305. The goods FIBC are rightly classifiable under Chapter Heading 6305 32 00 and not under 3923 29 90. 2.2 He also relied on Board s Circular No.42/2011-cus. dated 22.9.2011 on drawback wherein in Para 13 of the Circular it is stated that FIBCs which are made of manmade texti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar No. 42/2011-cus. dated 22.9.2011 vide para 13 reads as follows: 13. There has been a dispute regarding classification of FIBC (Flexible Intermediate Bulk Containers). It has been represented that the field formations are classifying the FIBCs under Chapter 39 whereas the FIBC finds a specific mention under tariff item 6305 02 of the drawback schedule and the exporters are being denied drawback mentioned against the heading 6305 02 in the Drawback Schedule. It is hereby clarified that FIBCs which are made of manmade textile material would be classifiable under drawback tariff item 6305 02. FIBCs which are big or bulk bags or super sacks made of polymers of ethylene and other plastic material would however, be classifiable under chapt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods made by other plastics . Both the Board Circular and DGFT have clarified that FIBC is classifiable under 6305 based on the HSN Explanatory Notes to Chapter 39 as seen below: The heading excludes household articles such as dustbins, and cups which are used as tableware or toilet articles and do not have the character of containers for the packing or conveyance of goods, whether or not sometimes used for such purposes (heading 39.24), containers of heading 42.02 and flexible intermediate bulk containers of heading 63.05. 4.6 Further, we find that in the case of CCE vs. Karur KCP Packaging P. Ltd. (supra), the Tribunal by relying on the Hon ble High Court s decision rendered in the case of Karur KCP Packings Ltd. vs. CC: 2015 (31) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e., 6301 till 1994-95. With effect from 2005 the Central Excise Tariff was aligned with HSN and the Chapter 63 expanded to include more sub-headings from 6301 to 6310. 16. In view of the specific clarification of the Board and by respectfully following the Hon ble High Court s order, we hold that FIBC is rightly classifiable under 6305 32 00 and not under 3923 29 90. Therefore, we do not find any infirmity in the order passed by the Commissioner (Appeals) and we uphold the same. Accordingly, the appeals filed by Revenue are dismissed. The cross-objections being in the nature of comments/reply to the appeals, they are disposed of. 4.7 In view of the above clarifications by the Board and DGFT and relying on the decisions in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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