1984 (7) TMI 377 - AT - Customs

Summary

Issues:
1. Rejection of refund claims for countervailing duty on imported goods described as "foundation cloth" for the manufacture of flexible card clothing.
2. Classification of the imported goods under Tariff Entries 19, 22AA, and 16A of the Central Excise Tariff (CET).
3. Exemption from countervailing duty under various notifications for different categories of textile fabrics.
4. Application of the principle of pre-dominance in determining the classification of goods.
5. Interpretation of technical composition certificates and manufacturer's descriptions in determining the nature of imported goods.
6. Applicability of exemption notifications based on the width of the imported goods.

Analysis:
The appeal concerns the rejection of refund claims for countervailing duty on imported goods known as "foundation cloth" for flexible card clothing. The Appellate Collector upheld the rejection, classifying the goods under Tariff Entries 19 and 22AA of the CET. The appellants argued that the goods were not covered by these entries and should be classified as T.I. 68 goods exempt from countervailing duty. They also claimed exemption under various notifications for textile fabrics coated with low-density polyethylene. The appellants contended that the imported goods were composite articles, not fabrics, as they were intended for manufacturing card clothing. However, the Tribunal held that the goods retained the character of cloth based on technical composition certificates and manufacturer descriptions. The judgment referenced the Supreme Court's decision emphasizing that the term "fabric" covers textiles regardless of construction or material. The Tribunal confirmed the classification of the goods under Tariff Entry 19-1, except for one consignment under Tariff Entry 22AA. The Tribunal granted exemption from countervailing duty based on the width of the goods as per specific notifications.

In conclusion, the Tribunal dismissed the appeal regarding classification under T.I. 68 but allowed exemption from countervailing duty for goods classified under T.I. 19 based on specific conditions. The judgment clarified the exemption status based on the width of the imported goods under different bill entries. The decision highlighted the importance of technical composition certificates and manufacturer descriptions in determining the nature of imported goods and applying relevant exemption notifications.