1992 (3) TMI 208 - AT - Central Excise

Summary

Issues:
Classification of goods under sub-headings 5504.31 and 5504.39 of Central Excise Tariff Act, 1985.

Detailed Analysis:

1. Facts and Allegations:
The case involved a dispute regarding the classification of Shoddy Acrylic yarn manufactured by the appellants under the Central Excise Act, 1944. The Department alleged that the goods were wrongly classified under sub-heading 5504.31 and demanded duty under Section 11A of the Act.

2. Contentions of the Parties:
The appellants argued that the goods should be classified under sub-heading 5504.31 as the acrylic fibre predominated by weight, even though there were small percentages of natural fibres present. They relied on chemical examination results and trade notices to support their claim. On the other hand, the Revenue contended that the correct classification was under sub-heading 5504.39 due to the presence of natural fibres, citing a previous ruling.

3. Legal Analysis by the Tribunal:
The Tribunal analyzed the relevant tariff entries and notes under the Central Excise Tariff Act, 1985. It noted that goods should be classified based on the textile material that predominates by weight. The test results showed that acrylic fibre predominated in the goods, meeting the criteria of sub-heading 5504.31. The presence of small percentages of natural fibres did not disqualify the goods from this classification.

4. Decision and Rationale:
After considering the arguments and evidence, the Tribunal ruled in favor of the appellants. It held that the goods met the requirements of sub-heading 5504.31 as the acrylic fibre predominated by weight, and the presence of natural fibres did not alter this classification. The Tribunal distinguished the cited ruling, stating it was not applicable to the present case.

5. Conclusion:
The Tribunal allowed the appeal, concluding that the goods should be classified under sub-heading 5504.31 of the Central Excise Tariff Act, 1985. The decision was based on the predominance of acrylic fibre by weight, in line with the relevant legal provisions and test results.