1998 (7) TMI 699 - AT - Central Excise

Summary

Issues:
Classification of supertax non-woven carpet under the Tariff.
Entitlement to the benefit of Notification No. 29/95-C.E., dated 16-3-1995.

Classification Issue:
The dispute revolves around the classification of supertax non-woven carpet by the appellants, with the Revenue contending it falls under Heading 5703.90 as other floor coverings, while the appellants argue for classification under Heading 5703.20 as floor coverings of jute. The appellants based their classification on the predominance of jute content by weight over other textile materials, citing Section Note 2A of Section XI. They relied on the decision of the Hon'ble A.P. High Court in a similar case to support their argument. The manufacturing process was detailed to highlight the jute content's significance in the product. The Hon'ble A.P. High Court's decision emphasized the correct classification criteria for goods containing multiple textile materials, supporting the appellants' claim. The Appellate Tribunal, following the High Court's decision, classified the supertax non-woven carpet under Heading 5703.20 as floor coverings of jute, thereby allowing the appeal and setting aside the impugned order.

Entitlement to Notification Benefit Issue:
The Notification No. 29/95-C.E., dated 16-3-1995, provides a concessional rate of duty for floor coverings of jute. As the Appellate Tribunal classified the supertax non-woven carpet under Heading 5703.20 as floor coverings of jute, the appellants are deemed entitled to the benefit of this Notification. Consequently, the impugned order was overturned, and the appeal was allowed in favor of the appellants. The detailed analysis of the classification issue, supported by legal precedents and statutory provisions, led to the decision in favor of the appellants, ensuring their entitlement to the Notification benefit based on the correct classification of the product.