1997 (1) TMI 282 - AT - Central Excise

Summary

Issues: Classification of silk tops and silk noils under Tariff Heading 5001 or Heading 5601 of the Central Excise Tariff Act, 1985.

Analysis:
The judgment revolves around the classification of silk tops and silk noils under the Central Excise Tariff Act, specifically whether they fall under Tariff Heading 5001 or Heading 5601. The Assistant Collector initially classified the items under Heading 5001, stating that they do not qualify as wadding of textile due to their length exceeding 5 mm and lack of absorbency for sanitary purposes. This decision was upheld by the Collector (Appeals). The department, dissatisfied with this classification, appealed the decision.

During the appeal, the Revenue argued that Rule 4 of Interpretation Rules should apply, while the Respondent's Advocate contended that the length of the items, ranging from 45 mm to 60 mm, excludes them from Chapter 56 classification. The Advocate further relied on the Harmonized System of Nomenclature (HSN) to support the classification under Chapter 50 for silk noils and silk tops.

Upon careful consideration of both arguments and a review of the records, the Tribunal examined the relevant Tariff Items. It was established that fibers of textiles not exceeding 5 mm are classified under Chapter 56, which was not the case for the items in question. The length of silk noils and silk tops being between 45 mm to 60 mm excluded them from Chapter 56 classification, as confirmed by the lower authorities. The Tribunal also referenced the HSN, specifically noting that silk noils fall under Heading 50.03, emphasizing the distinction between silk waste and noil silk. Additionally, Chapter 56 pertains to wadding, felt, and non-wovens, while sub-heading 5601.00 specifies textile fibers not exceeding 5 mm in length. Given the absence of a specific entry for the items in question and in consideration of the HSN Notes, the Tribunal concurred with the lower authorities' classification under Heading 5001 of the Central Excise Tariff Act. Consequently, the appeal filed by the department was dismissed, upholding the impugned order.