TMI Blog2005 (3) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... can one resort to the subsequent rules. The appellants have relied upon Rule 3. Rule 3 must be understood only in the context of sub-rule (b) of Rule 2 which says inter alia that the classification of goods consisting of more than one material or substance shall be according to the principles contained in Rule 3. Therefore when goods are prima facie, classifiable under two or more headings, classification shall be effected according to sub-rules (a), (b) and (c) of Rule 3 and in that order. As in respect of other years, the Tribunal had taken the same view as has been taken by it in the order impugned in these appeals and classified the respondent's products under Chapters 52 and 54. No appeal has been preferred from those decisions by the Revenue and the finding for those years remain unchallenged.For these reasons, the appeals are dismissed - Civil Appeal No. 2816-2818 of 2002 & Civil Appeal No. 1694, 5039, 5040, 5455, 5456, 5457, 5458 of 2003 - - - Dated:- 1-3-2005 - Ruma Pal, Arijit Pasayat and C.K. Thakker, JJ. A. Subba Rao, Ravinder Aggarwal, T.A. Khan, B. Krishna Prasad, V. Lakshmikumaran, Alok Yadav, Rajesh Kumar, Mahesh Agrawal, Rishi Agrawal, E.C. Agrawala, Sanj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r TH 59.09. TH 59.09 reads : Chapter 59 Impregnated, coated and laminated fabrics, etc. 59.6 Heading No. Sub-heading No. Description of goods Rate of duty Basic Additional 1 2 3 4 5 59.09 5909.00 All other textiles products and articles of a kind suitable for industrial use 12% (for example, textile fabrics, combined with one or more layers of rubber, leather or other material, bolting cloth, endless felts of textile fabrics, straining cloth) 4.The conclusion in Simplex I was arrived at on the basis that TH 59.09 referred to fabrics for industrial use and that fabrics for industrial use was a specific description and applying Rule 3(a) of the Interpretation Rules, TH 59.09 would prevail over general description of the fabrics as grey cotton fabrics or man-made fabrics under TH 52.05 or 54.08. It was held that TH 59.09 was a specific entry which dealt with fabrics for industrial use and since the respondent marketed their products admittedly for industrial use, the other entries in Chapters 52 and 54 would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up" articles can be classified under Chapter 59.09. The department's case there as well as in the case before us was not that the cotton fabrics manufactured by the respondent/assessee were in any manner made up, nor was it in dispute that the goods were woven fabrics of more than 85% by weight of cotton. The goods were in running length not cut to size or processed; (2) Tariff heading 59.09 was a residuary heading so that if goods manufactured by appellants fall in any other heading of Section XI it cannot be classified under Chapter heading 59.09; (3) textile products or textile articles as referred to in 59.09 were not textile fabrics. Only something made out the fabrics would be termed as textile products or textile articles. Therefore, unprocessed textile fabrics do not fall within 59.09 (now 59.11); (4) De hors the items contemplated by Chapter Note 6 (now 7) to Chapter 59, no articles could be classified under heading 59.09. Following the decision in Jyoti Overseas the CEGAT by the order impugned in this appeal set aside the order of the Commissioner (Appeals). The question is was Jyoti Overseas right in overruling Simplex I ? 7.The three Chapters, namely; Chapters 52, 54 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up goods therefore would not be covered by this paragraph. 9.Paragraph 'b' of SN-6 also pertains to "textile articles (other than those of heading principles 59.07 and 59.08) of a kind used for technical purposes [for example textile fabrics and felts, endless or fitted with linking devices, of a kind used in paper making or similar machines (for example, for pulp or asbestos cement), gaskets, washers, polishing discs and other machinery parts]". 10.This paragraph of CN-6 also indicates that it refers to 'made up' or processed goods and therefore running lengths or bolts of unprocessed fabric are not covered by TH 59.09. "Endless felts" contrary to what was assumed in Simplex I is not a running length of fabric, but a product with no end such as a completed circular length which being without an end or beginning would be endless. TH 59.09 deals with textile 'articles' and not textile fabrics as wrongly assumed in Simplex I. Examples of textile articles may be found in TH 59.07 and 59.08 such as textile hose-piping, transmission or conveyor belts or belting. The language of TH 59.09 itself shows that it refers to articles and products other than articles referred to in the Chap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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