1989 (3) TMI 232 - AT - Central Excise

Summary

Issues Involved: Classification of HDPE woven fabrics cut to size of woven sacks under Central Excise Tariff 1985.

Issue 1: Classification under sub-heading 6301.00
- The department alleged that the goods fell under incomplete unfinished woven sacks classifiable under heading 63.01 of sub-heading 6301.00.
- The Assistant Collector and Collector of Customs upheld this classification.
- Appellants argued that the fabrics were classified under heading 54.08 attracting nil rate of duty.
- The department contended that the goods were cylindrical hollow tubings, cut and prepared as per customer's specifications, requiring only stitching at the ends.
- The department emphasized that the goods had assumed the essential characteristic of bags.

Issue 2: Interpretation of Rules
- Rule 2(a) extends the scope of any heading to cover incomplete or unfinished articles having the essential character of the complete article.
- Appellants relied on Section Note 5 of Section XI, arguing that the goods were not made up articles as they were cut into squares or rectangles.
- The Tribunal observed that the fabrics, although tubular, were cut to size for finishing, having the essential character of complete goods.
- The Tribunal held that the goods were correctly classifiable under heading 63.01 of sub-heading 6301.00.

Separate Judgment by G. Sankaran, Senior Vice-President:
- Rule 1 states that classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes.
- Heading 63.01 covers made up textile articles not elsewhere specified, which the hollow tubular HDPE fabrics did not fall under.
- The fabrics, cut into desired lengths without further operations, did not resemble or have the essential characteristics of sacks.
- The Senior Vice-President classified the goods under heading 54.08, sub-heading 5408.00, as fabrics of man-made filament yarn woven and not subjected to any process.
- The appeal was allowed based on this classification.

This judgment clarifies the classification of HDPE woven fabrics cut to size of woven sacks under the Central Excise Tariff 1985. The Tribunal upheld the classification under sub-heading 6301.00 based on the essential character of the goods as complete articles. The interpretation of Rules and Section Note 5 of Section XI played a crucial role in determining the classification. Additionally, the separate judgment by G. Sankaran, Senior Vice-President, provided an alternative classification under heading 54.08, sub-heading 5408.00, based on the nature of the fabrics as woven fabrics not subjected to further processes.