1999 (8) TMI 149 - AT - Central Excise

Summary

Issues: Classification of Cotton Swabs under Central Excise Tariff

Issue 1: Classification of Cotton Swabs under Central Excise Tariff
The case involved a dispute over the classification of Cotton Swabs under the Central Excise Tariff. The Ld. Collector (Appeals) initially classified the product under Heading 96.03, but the Revenue challenged this classification, arguing that it should fall under Chapter sub-heading 5601.00 instead. The Department contended that the product was similar to another company's product and not made from carded cotton in the form of sliver, therefore should not be classified under Heading 96.03. The respondents, on the other hand, argued that their product was distinct due to differences in usage directions and manufacturing process.

Issue 2: Arguments and Submissions
The Revenue, represented by Shri R.S. Sangia, asserted that the product should be classified under Chapter sub-heading 5601.00 as it was not in the form of carded cotton as Sliver, and Chapter sub-heading 9603.00 did not apply as it covered items like brooms and brushes. The Revenue cited a previous Tribunal decision involving a similar product from another company to support their argument. The respondents, although not present, submitted written contentions stating that Cotton Viscose Slivers were used in the manufacturing process, and the product should be classified under Chapter sub-heading 9603.00 as it was not wadding of textile materials but a swab.

Issue 3: Tribunal's Analysis and Decision
After considering the arguments, the Tribunal examined Tariff Headings 56.01 and 96.03, as well as the dictionary meaning of the word "Swabs." The Tribunal determined that Chapter Heading 56.01, covering wadding of textile materials and articles thereof, applied to Cotton Swabs as they were considered textile material converted into an article of wadding. On the other hand, Chapter Heading 96.03, encompassing brooms and brushes, was deemed inappropriate as Cotton Swabs did not fall under these categories based on their end use for cleaning dirt and wax from ears. Considering the manufacturing process and end use, the Tribunal concluded that the product should be classified under Chapter Heading 56.01, thereby allowing the appeal of the Revenue and setting aside the previous order.

In conclusion, the Tribunal's decision clarified the classification of Cotton Swabs under the Central Excise Tariff, emphasizing the importance of the manufacturing process, end use, and distinct characteristics of the product in determining its appropriate classification under the relevant tariff headings.