1992 (9) TMI 377 - AT - Central Excise

Summary

Issues: Classification of HDPE Tapes and Sacks

Classification of HDPE Tapes and Sacks:
The judgment dealt with the correct classification of HDPE Tapes and HDPE Sacks manufactured from them. The Department had classified HDPE strips or tapes under Heading 5406.90, while the assessees claimed classification under Heading 3920.32. Similarly, HDPE Sacks were classified under heading 5406.90 instead of the claim under 3922.90 and later under 3926.90. The appeals raised a common question of law and facts regarding the classification of the impugned goods.

Argument of Appellants:
The appellants argued for classification under Chapter 39 as articles of plastics with nil rate of duty. They relied on a detailed chart submitted in the appeals. The appellants contended that the Tribunal's previous ruling in a similar case supported their classification under Chapter 39, citing the judgment of the Hon'ble M.P. High Court in a relevant case.

Argument of Respondent:
The Department argued that HDPE sacks should be classified under Heading 3923.90 based on the ruling of the Hon'ble Madhya Pradesh High Court, contrary to the appellants' claim under Heading 3922.90. The Department emphasized the need to follow the High Court's ruling and Tribunal's decisions in similar matters.

Decision and Analysis:
After considering the arguments and reviewing the relevant rulings, the Tribunal found that the classification under Chapter 39 for the impugned goods was appropriate. The Tribunal referenced the M.P. High Court's judgment and previous Tribunal rulings to support the classification of HDPE strips or tapes under Heading 3920.32 and HDPE sacks under Heading 3923.90. The Tribunal emphasized that the evidence and reasoning presented aligned with the classification under Chapter 39 as articles of plastics.

Outcome and Relief:
Consequently, the appeals were allowed in favor of the appellants, granting them relief subject to the provisions of the Central Excises and Salt Act, 1944. The appellants were entitled to a refund of the amounts deposited, and the lower authorities were directed to process the refund claims and provide consequential relief in accordance with the law. The Tribunal upheld the classification of the impugned goods under Chapter 39, affirming the appellants' claim for nil rate of duty based on the nature of the goods as articles of plastics.