2005 (8) TMI 527 - AT - Central Excise

Summary

Issues: Classification of "dyed D/C book binding cloth" under Chapter 52.00 or heading 5901.10 of Central Excise Tariff, 1985.

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue revolved around the classification of "dyed D/C book binding cloth" to determine whether it falls under Chapter 52.00 or heading 5901.10 of the Central Excise Tariff, 1985. The Tribunal considered the previous order challenged in the Hon. Gujarat High Court and the decision in the case of CCE v. Sushma Textiles Pvt. Ltd. The Apex Court's conditions for classifying products under heading 59.01 were analyzed, emphasizing the fabric's stiffness, durability, and heaviness. The Tribunal noted that the samples in question did not meet the criteria set by the Apex Court, indicating that the fabric was not impervious to water and lost stiffness upon contact. It was concluded that the tests laid down by the Apex Court needed to be strictly applied for classification purposes. Ultimately, the Tribunal upheld the lower authorities' classification of the product under heading 52.06, rejecting the Revenue's appeals. The judgment was pronounced in court on 12-8-2005.