2005 (2) TMI 567 - AT - Customs

Summary

Issues Involved: Classification of imported fabric under Central Excise Tariff Act - Heading No. 60.02 or Heading 58.04.

Detailed Analysis:

Issue 1: Classification of Fabric
The main issue in this appeal was the classification of the 100% Polyester Curtain Fabric imported by M/s. Sunint Auto Pvt. Ltd. The appellant claimed the fabric should be classified under Heading No. 60.02 of the Central Excise Tariff Act, while the Commissioner (Appeals) confirmed its classification under Heading 58.04.

Appellant's Argument:
The appellant's advocate argued that heading 58.04 excludes fabrics that are woven, knitted, or crocheted. They presented a test report from the Textile Committee, stating that the fabric in question is knitted fabric. The advocate emphasized that the Textile Committee's expert opinion should not be disregarded without valid reasons, especially since the report was obtained under the Commissioner's instructions.

Respondent's Argument:
The Departmental Representative (D.R.) contended that the appellant initially classified the product under a different heading before claiming it under Heading 60.02. The Adjudicating Authority observed that the fabric had two sets of threads running in different directions, resulting in a pattern with meshes but no interlocking loops. The D.R. cited previous decisions to support the argument that the fabric should not be classified as knitted fabric.

Judgment:
After considering both sides' submissions, the Tribunal noted that the Textile Committee's opinion classified the fabric as warp knitted fabric. The Revenue did not provide any contradictory expert opinion. The Tribunal found that since knitted fabric is excluded from Heading 58.04, the fabric, being knitted as per the Textile Committee, cannot fall under that heading. The Tribunal distinguished previous cases cited by the D.R., highlighting that in those cases, there was no clear expert opinion like the one provided by the Textile Committee in this matter. Consequently, the Tribunal set aside the Commissioner's decision and allowed the appeal in favor of the appellant, M/s. Sunint Auto Pvt. Ltd.

This detailed analysis of the judgment highlights the arguments presented by both parties, the reasoning behind the Tribunal's decision, and the relevant legal interpretations regarding the classification of the imported fabric under the Central Excise Tariff Act.