1999 (10) TMI 177 - AT - Central Excise

Summary

Issues:
Classification of net fabric woven on looms under Chapter Heading 5206 or 5804.90.

Analysis:
The case involved a dispute over the classification of net fabric woven on looms by the respondent, whether it should be classified under Chapter Heading 5206 as claimed by the respondent or under 5804.90 as held by the Department. Initially, the respondents classified the fabric under Chapter Heading 5804.90, but a subsequent Show Cause Notice proposed classification under Chapter sub-heading 5804.90. The Asstt. Collector classified the fabric under Chapter sub-heading 5804.90 based on a Tribunal decision. However, the ld. Collector (Appeals) held that woven netting fabric should fall under Chapter 52, supporting the respondent's appeal. The Department appealed this decision.

During the arguments, the ld. DR referenced a Tribunal decision stating that woven fabrics should be classified under Chapter sub-heading 5804.00, emphasizing the specific entry for net fabric. On the other hand, the ld. Counsel for the respondents argued that since the fabric was woven on power looms, it should not be covered under Tariff Entry 5804 for woven fabrics. He distinguished the case relied upon by the appellants, stating it involved fabric manufactured on a roller locking machine, not woven fabric on power looms.

Upon review, the Tribunal examined the Tariff entries for Chapter Headings 5206 and 5804, noting that woven fabrics were specifically mentioned under Heading 5206, while the description under Chapter Heading 5804 did not include woven fabric. Considering the exclusion clause and the specific entry under Chapter Heading 52.06, the Tribunal concluded that the net fabric woven on looms should be classified under Chapter Heading 52.06. Therefore, the impugned order was upheld, and the appeals were rejected. The decision was based on the principle of harmonious construction and ensuring that no entry becomes redundant or non-existent.

In summary, the Tribunal resolved the issue by determining that the net fabric woven on power looms should be classified under Chapter Heading 52.06, as woven fabrics were specifically mentioned therein, and the description under Chapter Heading 5804 did not include woven fabric. This decision was supported by the principle of harmonious construction and ensuring the proper interpretation of Tariff entries to avoid redundancy or non-existence of any entry.