2005 (3) TMI 523 - AT - Central Excise

Summary

Issues: Classification of poly propylene twines under sub-heading 5607.41 or sub-heading 3926.90 of the Schedule to the Central Excise Tariff Act.

In this case, the main issue revolves around the classification of poly propylene twines manufactured by M/s. Poly Twines. The Revenue argues that the twines should be classified under sub-heading 5607.41, specifically for binder or baler twine, as it falls under Heading 56.07 and is not mentioned under Chapter 39. They rely on Rule 3(a) for interpretation and the Notes to HSN to support their classification. On the other hand, the Respondents claim that the product is poly propylene sutli, not twine, and should be classified under Chapter 39 as it is made from P.P. granules. They argue that the product lacks the properties of Heading 56.07 and cite the definition of twine from Fair Child's Dictionary of Textiles to support their stance.

The Tribunal carefully considers the arguments presented by both sides. It acknowledges that twine is typically classified under Heading 56.07, which pertains to "Textiles and Textile Articles." However, the Tribunal notes that the impugned product is manufactured from poly propylene granules, falling under Chapter 39 for plastic products. Since there is no evidence to indicate the presence of textile yarn in the product, it is deemed a plastic product and should be classified under Heading 39.26. The Tribunal references the Explanatory Notes in HSN, emphasizing that twines under Heading 56.07 must be made of textile material, which is not the case for the impugned product. Consequently, the Tribunal rejects the appeal filed by the Revenue, affirming the classification of the poly propylene twines under sub-heading 3926.90 of the Schedule to the Central Excise Tariff Act as confirmed by the Commissioner (Appeals) in the impugned Order.