2001 (2) TMI 203 - AT - Central Excise

Summary

Issues: Classification of goods under Chapter Heading 55.06, visibility of impregnation layer, similarity of manufacturing process with a previous case, applicability of Chapter Heading 52.06/52.07.

The judgment dealt with appeals arising from an adjudication order confirming duty demand and penalty imposed on the appellants for manufacturing water-proof canvas without paying duty, classified under Chapter Heading 55.06. The Counsel argued that the process involved common proofing without visible impregnation, citing a previous case where a similar process was classified under Chapter Heading 52.06/52.07. The JDR contended that visible impregnation is necessary for classification under Chapter Heading 55.06. The Tribunal analyzed the manufacturing processes of both parties, noting the impregnation in the appellants' process and the water-proofing in the previous case. Referring to technical definitions, the Tribunal concluded that the appellants' process aligned with water-proofing, requiring a visible layer for classification under Chapter Heading 59.06. Considering the similarity with the previous case and the correct classification under Chapter Heading 52.06/52.07, the Tribunal set aside the impugned order and allowed the appeal.