1997 (8) TMI 278 - AT - Central Excise

Summary

Issues: Classification of goods under Tariff Heading 6001.12 or 6001.19

The judgment by the Appellate Tribunal CEGAT, Madras dealt with the issue of classification of goods, specifically elastic tapes manufactured by knitting rubber strand with nylon vulcanised yarn. The original authority classified the goods under Heading 6001.12, while the Revenue sought classification under Tariff Heading 6001.19. The lower authority considered the definition of man-made textile material from the "Textile Terms definition" published by the Textile Terms Definition Committee of the Manchester Textile Institute. The lower authority concluded that the goods fell under Tariff Heading 6001.12 as knitted fabric of man-made textile material, supported by Section Note 2(b)(iii) of Section Note 14A of Section XI. The Revenue argued that rubber strand should be excluded as it falls under Chapter Heading 4007, covering vulcanised rubber thread and cord. However, the department failed to provide evidence or technical literature to support this claim.

The Appellate Tribunal observed that the lower authority's decision to classify the rubber strand as man-made textile material based on the "textile terms definition" was valid. No evidence was presented to show that the rubber strand used in the goods could not be considered as man-made textile material or fell under Heading 4007. Without evidence that the rubber strand was vulcanised rubber thread and cord, it could not be excluded from Section XI. As the rubber strand combined with nylon vulcanised yarn was knitted into elastic tapes, the goods were correctly classified under Tariff Heading 6001.12. Consequently, the appeal by the Revenue was found to be without merit and dismissed.