1998 (4) TMI 209 - AT - Central Excise

Summary

Issues: Classification of HDPE fabrics laminated with LDPE under Chapter Heading 3926.90 or 3920.38

Analysis:
1. Classification Dispute: The central issue in this appeal is the classification of HDPE fabrics laminated with LDPE on both sides under the Customs Tariff Act. The Assessee claimed classification under Chapter Heading 3926.90, while the Department contended it should be classified under Chapter Heading 3920.38.

2. Assessee's Claim: The Assessee argued that the product should be classified under Chapter Heading 3926.90 and was eligible for a NIL rate of duty as per Notification No. 53/86. They maintained that the product was a laminated sheet and not covered under Chapter Heading 3920.38.

3. Department's Position: The Department, represented by Shri A.K. Madan, asserted that HDPE fabrics coated with LDPE should be classified under sub-heading 3920.38. They argued that Chapter Heading 3926.90 pertains to articles of plastics not specified elsewhere, while the product in question falls under the specific category of laminated sheets.

4. Legal Precedents: The Assistant Collector initially ruled in favor of the Department, citing a Tribunal decision regarding the classification of similar goods. However, the Collector (Appeals) overturned this decision, referencing a judgment by the Madhya Pradesh High Court and other cases supporting the Assessee's classification.

5. Tribunal's Decision: The Tribunal, after considering the arguments and legal precedents, upheld the Assessee's classification under Chapter Heading 3926.90. They relied on the Madhya Pradesh High Court's ruling that goods made of plastics should be classified under Chapter Heading 39, and since the product did not fall under specific sub-headings, it should be classified under 3926.90.

6. Final Ruling: Ultimately, the Tribunal rejected the Department's appeal, affirming the classification of HDPE fabrics laminated with LDPE under Chapter Heading 3926.90. The decision was based on the interpretation of the tariff description and the application of relevant legal precedents, including the judgment of the Madhya Pradesh High Court.

By analyzing the classification dispute, legal arguments, precedents, and the final ruling, the Tribunal resolved the issue in favor of the Assessee, emphasizing the specific classification criteria and relevant case law.