2003 (1) TMI 614 - AT - Customs

Summary

Issues Involved:
1. Classification of the imported item as "woven polypropylene shade nets" versus "plastic sheets."
2. Eligibility for concessional duty under Customs Notification No. 11/97.
3. Interpretation of the term "sheet" in the context of the notification.

Issue-Wise Detailed Analysis:

1. Classification of the Imported Item:
The primary contention revolves around whether the imported item, described as "woven polypropylene shade nets," qualifies as "plastic sheets." The revenue argued that the item should be classified under a different heading (CTH 5608.90) and not as plastic sheets under Chapter 39. The Commissioner (Appeals) and the third Member (J) considered the item as a "sheet" based on its characteristics and common parlance definitions, while Member (T) disagreed, emphasizing the distinct classification of nets and sheets.

2. Eligibility for Concessional Duty:
The imported item sought the benefit of concessional duty under Customs Notification No. 11/97, which grants a reduced duty rate for specific items used in greenhouses, including "Ultra Violet retardant fibre glass/plastic sheets." The Commissioner (Appeals) granted this benefit, supported by certificates from the Ministry of Commerce and the Central Institute of Plastics Engineering and Technology, which certified the item's use in greenhouses and its characteristics. Member (J) upheld this view, while Member (T) argued that the notification specifically mentions "plastic sheets" and not "woven shade nets," thus denying the benefit.

3. Interpretation of the Term "Sheet":
The term "sheet" was crucial in determining the eligibility for concessional duty. The Commissioner (Appeals) interpreted "sheet" broadly, including woven nets based on dictionary definitions and common parlance, which was supported by Member (J). They argued that "sheet" refers to the shape and form of the material, not its solidity. Member (T) insisted on a strict interpretation, stating that "sheet" should not include woven nets, which are classified differently and have distinct characteristics, such as air permeability.

Judgment Summary:
The judgment reflects a split decision. The Commissioner (Appeals) and Member (J) concluded that the imported "woven polypropylene shade nets" could be considered "plastic sheets" under the notification, thus eligible for concessional duty. They emphasized the broad interpretation of "sheet" and the item's certification for greenhouse use. Conversely, Member (T) maintained a strict interpretation, denying the benefit based on the specific mention of "plastic sheets" in the notification and the distinct classification of nets.

Majority Decision:
The majority decision, supported by the third Member (J), upheld the Commissioner (Appeals)'s order, granting the benefit of concessional duty to the imported item. The revenue's appeal was dismissed, affirming that the "woven polypropylene shade nets" qualify as "plastic sheets" under the notification for concessional duty purposes.