2005 (6) TMI 561 - AT - Central Excise

Summary

Issues involved: Classification of tarpaulin cloth under Chapter 5207 or Chapter Heading 5906.90.

Analysis:
The case involved the appellants seeking waiver of pre-deposit and penalty related to the classification of tarpaulin cloth. The issue was whether the tarpaulin cloth should be classified under Chapter 5207 as claimed by the appellants or under Chapter Heading 5906.90 as alleged by the Department. The learned counsel for the appellants referred to a judgment by the Chennai Bench where the classification under Heading 5207 was accepted, contrary to the department's classification under Heading 59.06. The Tribunal noted that the issue was fully covered in favor of the assessee by the Chennai Bench's ruling, and with the consent of both sides, decided to take up the appeal for final disposal.

In the cited judgment, the Chennai Bench had extensively considered the classification of tarpaulin cloth and concluded that it should be classified only under 5207 of CETA, 1985, not under Heading 5906. Given that the issue had been settled in favor of the appellants, the appeal was allowed. The impugned order was set aside, and the appeal was allowed with any consequential relief if applicable. The decision was pronounced and dictated in open court by the Members of the Appellate Tribunal CESTAT Bangalore, Dr. S.L. Peeran, and Shri T.K. Jayaraman.