2014 (11) TMI 114 - AT - Central Excise

Classification of Knitted Fibres Shed Net - Classification under CETH 39269099 or CETH 60069000 - Held that - A specific entry in the CETA 1985 has to be the proper classification than a general entry in Chapter 39 of the CETA 1985, as per the Rules of interpretation to the CETA 1985. The Synthetic & Art Silk Mills Research Association (SASMIRA) Mumbai SASMIRA is linked to the Ministry of Textiles, Govt. of India, SASMIRA and after giving the definitions of Synthetic Textiles, warp knitted fabric etc opined in their letter dt.18.04.2012 &15.03.2013 that the product manufactured by the appellant is Warp Knitted Fabrics Technical Textile made up of man made synthetic yarn of width less than 5 mm. As per F.No.1(11)/2011/TTC/Vol.XX, dt.07.02.2012 written to the appellant by Assistant Director, Govt. of India, Ministry of Textiles, Office of the Textile Commissioner, Mumbai appellant s unit has been registered as a technical textile unit in the records of the office of Textile Commissioner and has been allotted registration No.05152007. As per the Technical Textile literature issued by office of Textile Commissioner, Ministry of Textile, Govt. of India Agrotex includes technical textile products used in Agriculture horticulture (incl.floriculture), fisheries and forestry. In view of Chapter Note-1(p) of Chapter 39, Section Note-1(g) of Section XI, Chapter Note 1 & 1A of Chapter 54 of the Central Excise Tariff Act 1985; read with relevant HSN Explanatory Notes; the Knitted Fabrics Shed Nets manufactured by appellant will be appropriately classifiable under Chapter 60 of the Central Excise Tariff Act 1985 - Decided in favour of assessee.

Summary

Issues involved:
Correct classification of 'Knitted Fibres Shed Net' manufactured by the appellant under Central Excise Tariff Act, 1985.

Detailed Analysis:

Issue 1: Correct classification of the product
The appellant contested the classification of the product under CETH 60069000 instead of CETH 39269099. The adjudicating authority and first appellate authority upheld the classification under CETH 39269099, relying on judgments of Madhya Pradesh High Court and Rajasthan High Court. The appellant argued that the product was made using Raschel Knitting Machine, not woven fabrics, thus not covered by previous case laws. They cited Section Note 1(h) of Section XI of CETA 1985 and opinions from authorities classifying the product under Chapter 60. The Revenue argued for classification under Chapter 39 based on previous court decisions.

Issue 2: Interpretation of Chapter Note 1 of Chapter 54 of CETA 1985
The judgment analyzed Chapter Note 1 of Chapter 54 of CETA 1985, emphasizing that man-made fibres made from polymerization are synthetic fibres. The introduction of Chapter Note 1A, considering filament yarn made from plastic as textile materials, was highlighted. The plastic strips used in the product were less than 5 mm, making them not classifiable under Chapter 39. Section Note 1(g) of Section XI also guided the classification of the product under man-made textile materials of Chapter 54.

Issue 3: Opinions of Special Agencies
The judgment considered opinions from agencies like SASMIRA and the Ministry of Textiles, classifying the product as 'Warp Knitted Fabrics Technical Textile.' The appellant's registration as a technical textile unit and classification under ITCHS Code 60059000 were noted. The opinions of these agencies, along with the nature of the product and circumstances, were deemed crucial in determining the correct classification.

Conclusion:
Based on Chapter Note-1(p) of Chapter 39, Section Note-1(g) of Section XI, Chapter Note 1 & 1A of Chapter 54 of CETA 1985, and relevant HSN Explanatory Notes, the 'Knitted Fabrics Shed Nets' manufactured by the appellant were rightly classified under Chapter 60 of the Central Excise Tariff Act 1985. The appeal filed by the appellant was allowed, emphasizing the importance of considering specific entries in the tariff for accurate classification over general entries.