1995 (1) TMI 178 - AT - Central Excise

Summary

Issues:
Classification of Bleached/Dyed Printed Pillow Covers and Napkins under Central Excise Tariff - Tariff Item 68 or Tariff Item 19.

Detailed Analysis:

Issue 1: Classification of Pillow Covers and Napkins

The Collector of Central Excise, Bombay filed appeals challenging the order of the Collector of Central Excise (Appeals) regarding the classification of Bleached/Dyed Printed Pillow Covers and Napkins. The Collector (Appeals) classified these items under Tariff Item 19, relying on the judgment of the Delhi High Court and a Tribunal decision. The appellants argued that these items should be classified under Tariff Item 68 as distinct products. The appellants contended that the running length of fabrics used for Pillow Covers and Napkins does not indicate their specific classification under Tariff Item 19. The Tribunal considered the evidence and held that since these items were not specifically mentioned under Tariff Item 19, they should be classified under the residuary Tariff Item 68, making them liable to duty.

Issue 2: Delay in Filing Supplementary Appeal

The appellants filed a supplementary appeal to meet procedural requirements, resulting in a delay. The appellants requested condonation of the delay, which was granted after considering the plea and records. The supplementary appeal was then heard along with the main appeal.

Issue 3: Interpretation of Tariff Entries

The Tribunal analyzed the Tariff Entry 19, which included various cotton fabrics. The Tribunal compared the decision in the case of M/s. Capri International, where a similar classification issue was discussed. The Tribunal examined the rulings of the Delhi High Court and the Supreme Court to determine the classification of the products. It was concluded that the processes involved in creating Pillow Covers and Napkins constituted manufacturing, leading to their classification under Tariff Item 68 due to the absence of specific mention under Tariff Item 19.

Conclusion

Based on the above analysis, the Tribunal held that Bleached/Dyed Printed Napkins and Pillow Covers should be classified under the residuary Tariff Item 68, making them liable to duty. The impugned order was set aside, and the appeals were allowed in favor of the Collector of Central Excise, Bombay. The decision was based on the absence of specific inclusion of these items under Tariff Item 19, leading to their classification under the residuary Tariff Item 68.