1991 (7) TMI 295 - AT - Central Excise

Summary

Issues:
Classification of Glass Wool Mat/Felt under Notification No. 52/86 - Serial Number 10 or 11.

Detailed Analysis:

1. Issue of Classification: The appeal pertains to the classification of Glass Wool Mat/Felt by the appellant under Notification No. 52/86. The primary issue is whether the product falls under sub-heading 7014.00 read with serial number 10 of the notification as claimed by the appellant or should be classified under serial number 11 as held by the Department.

2. Background and Proceedings: Initially, the appellant classified Glass Wool Mat under Heading 7014 and claimed assessment under serial number 11 of Notification No. 52/86. However, a revised classification list was filed later, seeking exemption under Serial Number 10 of the notification for non-woven bonded fabrics. The Assistant Collector approved the initial classification, but subsequent appeals and orders led to conflicting decisions regarding the classification under the notification.

3. Appellant's Argument: The appellant's counsel argued that since the goods were non-woven fabrics, they should be entitled to exemption under Serial Number 10 of the notification. He emphasized that the notification does not differentiate between woven and non-woven fabrics, and therefore, the exemption should apply equally to non-woven bonded fabrics.

4. Manufacturing Process Evidence: The appellant presented detailed evidence regarding the manufacturing process of the Glass Wool Mat/Felt, including technical literature and test reports from reputable research associations. The evidence supported the contention that the goods in question were indeed non-woven glass fabrics, aligning with the classification sought by the appellant.

5. Legal Definitions of Fabric: Reference was made to legal definitions of fabric from relevant textile dictionaries and authorities to support the argument that the Glass Wool Mat/Felt could be considered as fabric under the notification, further strengthening the appellant's case for classification under Serial Number 10.

6. Decision and Rationale: After considering the arguments and evidence from both sides, the Tribunal found merit in the appellant's contentions. The Tribunal disagreed with the Department's request for remand, noting that the Collector had already considered the evidence and arrived at a clear finding that the goods were non-woven fabrics. Since the notification did not distinguish between woven and non-woven fabrics under Serial Number 10, the Tribunal held that the appellant was entitled to the benefit of exemption under that serial number.

7. Final Judgment: Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant. The Tribunal upheld the classification of the Glass Wool Mat/Felt under Serial Number 10 of Notification No. 52/86, granting the appellant the benefit of exemption as claimed.

This detailed analysis outlines the classification dispute, the arguments presented by both parties, the evidentiary support provided, legal definitions referenced, the Tribunal's decision rationale, and the final judgment in favor of the appellant.