2003 (9) TMI 511 - AT - Central Excise

Summary

Issues: Classification of goods under Central Excise Tariff Act, 1985

Classification of goods under Central Excise Tariff Act, 1985:
The case involved the classification of sacks made of HDPE woven fabrics coated with LDPE under the Central Excise Tariff Act, 1985. The dispute arose regarding the appropriate sub-heading for classification, with the Revenue contending that the classification should take effect from 1989 based on a previous court decision. However, the Asstt. Commissioner and Commissioner (Appeals) held that the classification order issued in terms of Sec. 37B was prospective and effective only from the date of the order. The Tribunal, in line with the Supreme Court's decision in H.M. Bags v. Collector of Central Excise, emphasized that the classification under Chapter 39 could only take effect from the date specified in the order, which was 24-9-92. Consequently, the Tribunal upheld the impugned order and dismissed the appeal by the Revenue.

Cross objection:
The Tribunal disposed of the cross objection accordingly, without providing detailed reasoning or analysis.

In summary, the judgment primarily revolved around the classification of goods under the Central Excise Tariff Act, 1985. The dispute centered on the effective date of classification for sacks made of specific materials. The Tribunal upheld the decision that the classification order issued under Sec. 37B was prospective and could only take effect from the specified date in the order, relying on a Supreme Court precedent. The judgment highlights the importance of clear language in classification orders and the significance of effective dates specified in such orders to determine the applicability of classification for excise duty purposes.