1999 (4) TMI 200 - AT - Central Excise

Summary

Issues:
Classification of cotton fabric coated with adhesives and bonded with release paper under Central Excise Tariff - Sub-heading 5906.90 vs. Sub-heading 5909.00.

Analysis:
The appeal was filed against the Order-in-Appeal by the Collector of Central Excise, where the product in question, cotton fabric coated with adhesives and bonded with release paper, was classified under sub-heading 5906.90 of the Central Excise Tariff, while the appellants argued for classification under sub-heading 5909.00.

The appellants contended that the product was meant for industrial use in the shoe industry as inner lining, and the revenue wrongly classified it under sub-heading 5906.90. They argued that the impregnation/coating or covering in the product was not visible to the naked eye, citing Chapter Note 4 of Chapter 59 to support their claim. Additionally, they highlighted a previous Tribunal decision classifying similar products under sub-heading 5909.00, emphasizing that the product was not impregnated textile fabric.

On the other hand, the Revenue reiterated the Collector's findings and classified the goods under sub-heading 5906.90, which covers textile fabrics otherwise impregnated, coated, or covered. The appellants' argument that the product was coated with adhesive and not visible to the naked eye, and meant for industrial use only, was not disputed by the Revenue.

The Tribunal referred to a previous case involving cloth-based self-adhesive products and held that such products were not covered under Heading 5906 of the Central Excise Tariff but were classifiable under Heading 5909.00. Considering the manufacturing process of the product in question, the Tribunal concluded that it was not impregnated textile fabric and, therefore, more appropriately classifiable under sub-heading 5909.00.

Consequently, the impugned order was set aside, and the appeal was allowed, leading to the classification of the cotton fabric coated with adhesives and bonded with release paper under sub-heading 5909.00 of the Central Excise Tariff, suitable for industrial use in the shoe industry as inner lining.