1994 (10) TMI 158 - AT - Central Excise

Summary

Issues:
1. Classification of goods described as Noils-I and Noils-II under Tariff Item 68.
2. Dispute regarding whether the goods were liable to pay duty.

Detailed Analysis:
1. The Collector of Central Excise filed an appeal against the order of Collector (Appeals) concerning the classification of goods as Noils-I and Noils-II under Tariff Item 68. The Collector (Appeals) found that the goods met the specifications of 'noils' as per ISI's Glossary of Textile terms. The appellants contended that their product aligned with the definition of 'noils' and should be classified as such. The Tribunal observed that the process of manufacture involved stages like scouring, carding, back washing, and combing. The evidence indicated that the goods in question were indeed 'noils' as per ISI specifications, obtained during the process of combing, the final stage of manufacturing wool tops. The Tribunal held that the goods were correctly classified as 'noils' and were not liable for duty under Tariff Item 68.

2. The dispute revolved around whether the goods described as Noils-I and Noils-II were liable to pay duty. The Department argued that the goods were carded, combed, and gilled wool, thus attracting duty under Tariff Item 68. On the other hand, the appellants contended that the goods were 'noils' and not subject to duty. The Central Board of Excise and Customs had clarified the classification of scoured wool under Tariff Item 68. The Tribunal examined the process of manufacture and found that the goods in question met the definition of 'noils' as per ISI specifications. The Tribunal concluded that the goods were indeed 'noils' and not liable for duty, upholding the impugned order and rejecting the appeal.

In conclusion, the Tribunal determined that the goods described as Noils-I and Noils-II were correctly classified as 'noils' based on the evidence and the process of manufacture. As such, the goods were not liable for duty under Tariff Item 68, as they aligned with the definition of 'noils' as per ISI specifications. The appeal filed by the Collector of Central Excise was rejected, affirming the decision that no duty was chargeable on the goods in dispute.