TMI Blog2003 (9) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... various textile products including fusible interlining cloth, which is used inside the garments, for cuffs, collars, etc. Such interlining cloth is partially coated with plastic. In 1989, the Central Board of Excise and Customs (hereinafter called as "the Board") issued a circular indicating that such interlining cloth would be classifiable under Chapters 52 to 55 of the HSN depending upon the textile material prior to use. Under the Finance Act, 1989, Chapter Note 2(c) of Chapter 59 was inserted indicating that such cloth would be classifiable under Clause 59.03. The position continued till 1995, when under the Finance Act, 1995, Note 2(c) of Chapter 59 was withdrawn, thus, reverting the position to pre - 1989 stage. However, thereafter t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes (1996, 2nd Edition, page 894) textile fabrics which are spattered by spraying with visible particles of thermoplastic material and are capable of providing a bond to other fabrics or materials on the application of heat and pressure are covered under Chapter Heading 59.03. Classification of such fabrics under Chapter Heading 59.03 may thus be considered as an exception to Chapter Note 2(a)(4) of Chapter 59 according to which fabrics partially coated or partially covered with plastics and bearing designs resulting from those treatments are excluded from the scope of Chapter Heading 59.03. Board is of the view that fusible interlining cloth would be appropriately classified under Chapter Heading 59.03 of the Central Excise Tariff." 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39); (4) Fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments (usually Chapters 50 to 55, 58 or 60) (5) Plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (Chapter 39); or (6) textile products of Heading No. 58.11; (b) Fabrics made from yarn, strip or the like, impregnated, coated, covered or sheathed with plastics, of Headin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Finance Act, 1989, such fusible interlining would be coming within Chapters 50 to 55 and only by virtue of introduction of Chapter Note 2(c) of Chapter 59 such fusible interlining came within the scope of Chapter 59.03. Once such Chapter Note 2(c) was omitted under the Finance Act, 1995 it is obvious that the position which was available prior to introduction of such Chapter Note 2(c) revived. In such background, issuance of Circular would be clearly against the statutory provisions. In other words, the Chapter Note 2(c) had been omitted under a statutory provision. The Board by issuing such a circular is trying to re-introduce such Note by insisting that such item should come within Chapter 59.03. 8.It is well settled that by issuin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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