2003 (1) TMI 492 - AT - Central Excise

Summary

Issues:
Classification of fabric under sub-heading 5901.10 or Heading 52.06 of the CETA, 1985.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Bangalore involved the classification of fabric processed by the respondent-assessee under sub-heading 5901.10 of the CETA, 1985 as contended by the Department or under Heading 52.06 as claimed by the assessee. The Commissioner concluded that the fabric cannot be classified under Chapter 59 as the Department failed to prove the fabric's permanent stiffness, relying on a previous Tribunal decision. The Revenue challenged this finding, arguing that the statute does not require permanent stiffness for fabrics under Heading 59.01, and the decisions cited by the Commissioner were irrelevant.

During the proceedings, it was established that the fabric received by the assessee undergoes various processes like desisting, sizing, bleaching, and dyeing, with temporary stiffness achieved through natural starch padding. The assessee did not subject the fabric to chemical treatment for permanent stiffness. The Revenue contended that the temporary stiffness was irrelevant for classification under Heading 59.01. The Tribunal referred to previous decisions where the requirement for stiffened fabric under Heading 59 was emphasized, and fabrics with temporary stiffness were classified under Heading 52.06. The Tribunal upheld the view that fabrics lacking permanent stiffness should be classified under Chapter 52 based on authoritative precedents.

Ultimately, the Tribunal dismissed the appeal, citing the consistent interpretation of the classification criteria for fabrics in previous decisions. The order was upheld based on the established principles regarding the classification of stiffened fabrics, emphasizing the necessity of permanent stiffness for classification under Chapter 59. The decision was in line with previous Tribunal rulings and affirmed by the Supreme Court, indicating a clear precedent for such classifications.

In conclusion, the Tribunal found no grounds to overturn the impugned order based on the authoritative pronouncements and consistent interpretation of the classification criteria for fabrics, leading to the dismissal of the appeal.