1998 (6) TMI 243 - AT - Central Excise

Summary

Issues:
Classification of mixed fabrics containing polyester and wool based on wool content percentage.

Analysis:
The appeal pertains to the classification of mixed fabrics containing polyester and wool by M/s. Oriental Carpet Manufacturers (India) Ltd. The dispute arose as the appellants declared the wool content as 28%, while the Revenue determined it to be over 30% based on test results. The classification depended on whether the wool content exceeded 30% for wool fabrics or was below 30% for man-made fabrics. The appellants argued that even with a tolerance limit, the wool content would remain below 30%. However, the Collector of Central Excise (Appeals) disagreed with this assertion, leading to a duty dispute amounting to Rs. 8,873.50.

The case involved a sample drawn from the mixed fabrics, revealing a composition of 68.3% polyester and 31.7% wool, contradicting the declared composition of 72% polyester and 28% wool. The appellants cited a circular to support a tolerance limit of 2.5%, which would classify the fabrics as man-made. Despite this argument, the test results indicated a wool content exceeding 30%, leading to a reclassification under a different heading than initially declared.

The Central Excise Rules mandated accurate declaration of goods' composition for duty assessment. In this instance, the declared composition did not align with the test results, prompting a classification change. Multiple tests confirmed the wool content above 30%, even after considering the tolerance limit. The tests were conducted by different laboratories, with the second test performed at the appellant's request. The Tribunal found no grounds to overturn the Collector of Central Excise (Appeals) decision, ultimately rejecting the appeal due to lack of merit.

In conclusion, the Tribunal upheld the classification of the mixed fabrics based on the wool content percentage, dismissing the appeal by M/s. Oriental Carpet Manufacturers (India) Ltd. The judgment emphasized the importance of accurate composition declaration for excise duty assessment and affirmed the test results indicating a wool content exceeding 30%, leading to the classification as wool fabrics.