2022 (11) TMI 925 - AT - Central Excise

Classification of goods - plastic Tape strips - Woven Fabrics Woven Sacks - FIBC (flexible intermediate bulk carriers) - HDPE/PP/LDPE sacks - Bags and warp knit fabrics - whether merits classification under Chapter Heading No s 54041990, 54072090, 63053300, 630533200 and 60053300 respectively or merit classification under Chapter Heading No. 39201099, 39269099, 39232100/39232990 as sought by DGCEI? HELD THAT - The Commissioner has held that there are no hesitation in holding that the products manufactured by the Noticee deserve to be classified under Chapter Heading 54, 63 and 60. It is not disputed by the learned Authorized Representative appearing for the Department that the issue raised before the Commissioner in the present matter was the issue considered in the two orders passed by the Commissioner (Appeals), which orders have been accepted by the Department. There is no error in the order passed by the Commissioner. The appeal is, accordingly, dismissed.

Summary

Issues:
Classification of goods under Central Excise Tariff - Chapter Heading No's 54041990, 54072090, 63053300, 630533200, 60053300 vs. 39201099, 39269099, 39232100/39232990.

Analysis:
The Department appealed against the order dropping the demand proposed in three show cause notices based on the classification of goods under Chapters 54, 60, and 63 of the Central Excise Tariff. The Commissioner had to decide whether goods manufactured by the respondent were correctly classified under specific Chapter Headings or merit classification under alternative Chapter Headings. The Commissioner's order affirmed the classification under Chapters 54, 63, and 60, referencing the decision of the Hon'ble CESTAT, Ahmedabad in a similar case, which was accepted by the Department. The Commissioner concluded that the products deserved classification under the mentioned Chapters, thus dismissing the duty demand proposed in the Show Cause Notice.

It was acknowledged that the issue raised before the Commissioner was consistent with the two orders passed by the Commissioner (Appeals) that were accepted by the Department. Consequently, the Tribunal found no error in the Commissioner's order and dismissed the appeal brought by the Department. The judgment upheld the classification of the goods under Chapters 54, 60, and 63 of the Central Excise Tariff, as determined by the Commissioner based on the previous decisions and acceptance by the Department.