1991 (2) TMI 281 - AT - Central Excise

Summary

Issues:
Classification of goods under Central Excise Tariff Act, 1985 - Interpretation of Chapter Heading No. 39.18 and Note 9 - Application of Chapter 39 and Chapter 59 - Appeal against Order of Collector of Central Excise (Appeals), Bombay.

Analysis:
The Appellate Tribunal CEGAT, New Delhi heard an appeal by the Revenue against the Order of Collector of Central Excise (Appeals), Bombay, regarding the classification of goods manufactured by the assessee. The main contention was whether the goods, wall coverings of textile base fabric laminated with PVC film, should be classified under Chapter Heading No. 39.18 of the Central Excise Tariff Act, 1985. The Revenue argued that the goods, being laminated with cotton fabrics, should not be covered by Note 9 of Chapter 39 and should fall under Heading No. 59.03 instead.

The Collector (Appeals) upheld the assessee's contention, stating that the goods fell under Chapter 39, specifically under Note 9, which applies to wall or ceiling coverings of plastics fixed permanently on a backing of any material other than paper. The Collector emphasized that the textile fabrics used were merely reinforcing agents and should be excluded from Chapter 59. Referring to the Harmonised Commodity Description and Coding System, the Collector highlighted that specific heading 3918 for wall coverings should be preferred over the general heading 5903. The Collector's decision was supported by a Supreme Court case precedent.

The Tribunal reproduced the relevant Chapter Notes, clarifying that the product in question was clearly classifiable under Chapter 39 as wall or ceiling coverings based on textile base fabric with PVC film lamination. The product met the criteria specified in Note 9 of Chapter 39 and did not fall under the provisions of Chapter 59.03, which applies to textile fabrics impregnated, coated, covered, or laminated with plastics. Consequently, the Tribunal dismissed the appeal, affirming the Collector's decision and rejecting the Revenue's arguments.

In conclusion, the Tribunal's detailed analysis focused on the correct interpretation and application of Chapter Heading No. 39.18 and Note 9 of the Central Excise Tariff Act, 1985. The judgment emphasized the specific classification of the goods in question under Chapter 39 as wall coverings, excluding them from the scope of Chapter 59. The decision provided clarity on the classification of similar products and upheld the Collector's ruling, setting a precedent for future cases involving similar issues of classification under the Tariff Act.