1992 (7) TMI 193 - AT - Customs

Summary

Issues Involved:
1. Classification of imported item 'Filter Aids and non-woven Filter Panels' under Customs Tariff Act, 1985.
2. Applicability of Chapter Note 7 of Chapter 59 to the classification.
3. Interpretation of H.S.N. explanatory notes.
4. Relevance of previous rulings, specifically the Simplex Mills Co. case.

Issue-wise Detailed Analysis:

1. Classification of Imported Item:
The appellants contested the classification of 'Filter Aids and non-woven Filter Panels' under heading 5603.30 by the Department, arguing it should fall under heading 5911.10. The Assistant Collector rejected the claim based on the imported goods being in rolls, which do not fit the description under sub-heading 59.11 as per Chapter Note 7 of Chapter 57. The Collector (Appeals) also held that the item, being in running length, is more appropriately classified under Heading 56.03.

2. Applicability of Chapter Note 7 of Chapter 59:
The appellants argued that the item is designed exclusively for technical use, which should place it under Heading 59.11. They referenced Note 7(b) of Chapter 59, which includes textile articles used for technical purposes, to support their claim. The note specifies that textile fabrics meant for technical purposes in length fall under Heading 59.11. The appellant emphasized that the functional character of the product should be considered for classification.

3. Interpretation of H.S.N. Explanatory Notes:
The appellants relied on the H.S.N. explanatory notes, which exclude non-woven fabric for technical use from Heading 56.03 and place it under Heading 59.11. They argued that these notes have persuasive value and should be accepted. The explanatory notes detail the specific characteristics and uses of textile products under Heading 59.11, reinforcing the appellants' argument that their product fits this classification.

4. Relevance of Previous Rulings:
The Tribunal referenced a similar case, M/s. Simplex Mills Co. v. Collector of Central Excise, where the classification of industrial fabrics under Chapter 52 was rejected in favor of Chapter 5909.00. The Tribunal in the Simplex Mills case applied Chapter Note 6(b), which is identical to Note 7(b) of Chapter 59. This precedent supports the appellants' argument that their product, being a special woven fabric for industrial use, should be classified under Heading 59.11.

Conclusion:
The Tribunal concluded that the entries in both the Customs and Excise Tariff Acts are pari materia and identically worded. By applying the ratio of the Simplex Mills Co. case, the Tribunal found merit in the appellants' argument that Note 7(b) of Chapter 59 includes textile fabrics for technical purposes, even if they are in running length and not necessarily cut to specific shapes. Consequently, the appeal was allowed, and the classification under Heading 5911.10 was deemed appropriate.