1996 (12) TMI 178 - AT - Central Excise

Summary

Issues:
Classification of cotton-based fabric laminates and bearing blanks under specific headings.

Analysis:
The appeal concerns the classification of two items under specific headings, disputed by the revenue department. The first item, cotton-based fabric laminates, was classified by the lower authority under heading 3926.90, while the revenue sought classification under heading 3920.37. The Chartered Accountant for the respondent referred to a Tribunal judgment supporting the classification of cotton fabric laminates under heading 3926.90 based on the manufacturing process. The Tribunal upheld this classification, citing the process of impregnating cotton fabrics with resin without the emergence of a plastic sheet. The Tribunal reasoned that the goods fall under heading 3926.90, dismissing the revenue's appeal on this item.

Regarding the second item, bearing blanks, the revenue department argued for classification under heading 8483, contending it is related to bearings. However, the item's functional role and fitment on machinery were debated. The Chartered Accountant agreed to a remand for reconsideration based on the item's shape, design, and fitment. The revenue department suggested classification under heading 8483 as part of machinery, referencing Chapter 39 exclusions. The Tribunal noted that the item did not fit descriptions under heading 8483 and appeared to function solely as a protective cover. Due to lack of detailed examination by the lower authority, the Tribunal remanded the matter for a fresh decision considering the item's shape, use, and relevant chapter entries. Until a clear fit under Chapter 84 is demonstrated, the item will be classified under heading 3926.90. The remand instructed the original authority to reevaluate the classification after considering the observations made, providing the appellants with a hearing opportunity.