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TMI Blog2025 (5) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... that the respondent used PP granules (plastic) as input which is classified under CETH 39021000. After due process, the adjudicating authority confirmed the classification of the goods under Chapter Heading 5603 and dropped the demand. Being aggrieved, the Revenue has filed the impugned appeal. 2. The Ld.AR for the department contends that the Commissioner was in error, by not adhering to the Tribunal's direction, to conduct laboratory test as directed vide its Order No.FO/75695-75696/2014 dated 20.10.2014 deciding the matter, and taking into account the test report of another company by the adjudicating authority was not in order. 3. The Ld.Counsel appearing on behalf of the respondent submits that the Show Cause Notice is vague and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Committee, Ministry of Textiles, described the product as non-woven fabric wherein polyolefin fibers are made use of. From the reports it transpires that polyolefin fibers are present in the sample. Also a report was obtained from the Joint Director, CRCL, Kolkata Customs House who clarified that the sample was found to be Non Woven Sheet Compound of fibers of Polypropylene. 7. The adjudicating authority has opined that while issuing the show cause notice, it was felt that Chapter Note 3(b) of Chapter 56 is applicable to this case, the basis being that the product is made of 100% Polypropylene i.e. plastic. He however notes that a study of the Chapter note, reveals that nonwovens made of manmade filaments are also falling under Chapter 56. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven, made of polypropylene without being completely embedded in plastics or rubber or entirely coated or covered on both sides with such materials which can be seen with naked eye, hence Chapter Note 3(b) was not applicable in the case. The adjudicating authority categorically notes that the show cause notice took recourse to Chapter Note 3(b) of Chapter 56, on the basis of the fact that the product has been made from 100% plastic material and no fiber is present and thus it cannot be textile material and therefore the show cause notices contend that the goods should merit classification under Chapter 39 instead of Chapter 56. 10. We note that the respondent has been carrying on the manufacture of the said goods and has also been regularly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igit sub-classifications are important to arrive at the correct rate of duty applicable to a product. In this particular case, the Revenue has not even made any attempt to give the details of 6 digits/8 digits of Chapter 39 under which they feel that the product should be classified. 13. Coming to the case law of Tirupathi Nonwoven Pvt.Ltd., referred to supra wherein an identical issue had come up before the Mumbai Bench of the Tribunal, the Tribunal had observed as under:- "3. The learned Counsel for the appellant argued that Chapter 39.23 where the said fabrics is sought to be classified reads as under : 3923 Articles for the conveyance or packing of goods of plastics; stoppers, lids, caps and other closures of plastics &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat HSN explanatory notes explain the various stages in manufacture of non-woven as web formation, bonding and finishing. In their case after spinning the yarn they are doing web formation by randomly lying the fibers. Then they do the bonding using the neat and mechanical bonding. Thus their products are squarely covered under the Heading 5603 as non-woven fabrics. The appellant also relies on the clarification of non-woven spun fabrics issued by the HMRC. 4. The learned AR relies on the impugned order and submitted written submissions. It was argued by the learned AR that material which is predominant in the said product is plastic as it is manufactured out of granule of Chapter 39 and therefore it should be classified under Chapter 39. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or technique. There is such phenomenal advance in science and technology, so wondrous is the variety of fabrics manufactured from materials hitherto unknown or unthought of and so many are the new techniques invented for making fabric out of yarn that it would be most unwise to confine the weaving process to the warp and woof pattern. Whatever be the mode of weaving employed, woven fabric would be 'textiles'. What is necessary is no more than weaving of yarn and weaving would mean binding or putting together by some process so as to form a fabric. The judgment was given while interpreting classified under Punjab General Sales Tax. While the manner of classification in the Punjab General Sales Tax Act was not the same as the manner of cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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