TMI Blog1995 (3) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... . - 4600 & 4421 of 1989 - - - Dated:- 28-3-1995 - S.P. Bharucha and K.S. Paripoornan, JJ. [Judgment per : Bharucha, J.]. - These appeals impugn the order dated 14th September, 1989, passed by the Customs, Excise and Gold (Control) Appellate Tribunal dismissing the appeals filed before it by the two appellants. Each of the two appellants manufactures PVC impregnated cotton conveyor belting and PVC impregnated flame resistant colliery conveyor belting. The appellants contended before the Tribunal that their products were classifiable under Tariff Entry 3922.90, whereas it was the case of the Excise authorities that they were classifiable under Tariff Entries 3920.11 or 3920.12, depending upon whether they were rigid or flexible str ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Act, 1985, itself contains rules for the interpretation of the tariff schedule. Rule 1 states, "The titles of Sections and Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the provisions hereinafter contained". Rule 2(a) states that any reference in a heading to goods shall be taken to include a reference to those goods incomplete or unfinished, provided that the incomplete or unfinished goods have the essential character of the complete or finished goods. Rule 3 states that when goods are prima facie classifiable under two or mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Heading 39.26 of the Harmonised Coding System states that it covered "articles, not elsewhere specified or included, of plastics ....... or of other materials of Headings 39.01 to 39.14" and included "(7) Transmission, conveyor or elevator belts, endless, or cut to length and joined end to end, or fitted with fasteners." 6.The Tribunal observed from copies of the customers' orders placed before it by the appellants that the length of the belting in rolls varied from 100 metres to 400 metres, the width varied from 600 milimetres to 1200 millimetres and the thickness varied between 7 mm and 9.5 mm. Considering the length, width and thickness of the belting, the Tribunal concluded that it fell within the term "strip", as meaning a long narro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maran relied upon the Explanatory Note to Tariff Heading 39.26, in identical terms in the Harmonised Coding System which was the basis of the present Tariff Schedule. It expressly stated that Tariff Heading 39.26 included conveyor belts. Mr. Laxmi Kumaran submitted that, in these circumstances, the conveyor belts manufactured by the appellants could only be classified under Tariff Entry 3922.90 and 3926.90 for the respective periods. 9.Mr. V. Gauri Shankar Murthy, learned counsel for the Excise authorities, submitted that the belting manufactured by the appellants was properly classifiable under Tariff Heading 59.08, which relates to impregnated, coated, covered or laminated textile fabrics and textile articles of a kind suitable for indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the statement and dismissed the writ petition as unnecessary. Having regard to the statement made on behalf of the Excise authorities before the Madras High Court that they would seek to classify the belting of the appellant in the first appeal under Tariff Entries 3920.11 or 3920.12 and not under 59.08, on which statement the High Court acted and dismissed the writ petition as unnecessary, it is not open to the Excise authorities to urge that the belting is classifiable under Tariff Heading 59.08. 11.As regards the appellant in the second appeal, the Excise authorities at all times sought to assess its belting under Tariff Entries 3920.11 or 3920.12 and never under Tariff Heading 59.08. It is impermissible for the Excise authorities to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Note to Tariff Heading 39.26 in the Harmonised Coding System, which is identical to Tariff Heading 39.26 of the Tariff Schedule, must be taken to be a guide, for the Tariff Schedule is based upon the Harmonised Coding System. That apart, we are unable to uphold the Tribunal's finding that the belting made by the appellants is a "strip". An article which is over 100 metres but only upto 1200 millimetres in width cannot be described as a "strip". Tariff Entries 3920.11 and 3920.12 cannot, therefore, be made applicable to the belting made by the appellants. For the later period, Tariff Heading 39.26 must be read as applicable to it. 15.The appeals, therefore, succeed. The judgment and order under appeal is set aside. The respondents are dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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