1999 (9) TMI 272 - AT - Central Excise

Summary

Issues:
Classification of fabrics described as Tarpaulin (Gold Colour) under Central Excise Tariff Heading No. 52.07 or 59.06.

Analysis:
The appeal involved a dispute over the classification of fabrics claimed to be Tarpaulin (Gold Colour) under the Central Excise Tariff. The respondents argued that the fabrics should be classified under Heading No. 52.07, while the Revenue proposed classification under Heading No. 59.06. The Collector of Central Excise (Appeals) initially classified the fabric under Heading No. 52.07.

The Revenue contended that the fabric was impregnated, supported by the Chemical Examiner's report indicating impregnation. The Dy. Collector of Central Excise classified the fabric under sub-heading No. 59.06 based on this report. However, the Collector of Central Excise (Appeals) formed his opinion independently, disregarding the Chemical Examiner's report, leading to the appeal.

Upon examination, the Dy. Chief Chemist's report confirmed heavy impregnation of the fabric with paraffin wax and other compounds, indicating classification as textile fabric otherwise impregnated. The respondents argued that the impregnation was done with wax for waterproofing, not meeting the criteria for classification under Heading No. 59.06.

The Board's Circular clarified that for classification under Heading No. 59.06, a visible layer formation on the fabric's surface was necessary, aligning with the requirement of impregnation being visible to the naked eye. The ambiguity in the Collector of Central Excise (Appeals) decision regarding visible layer formation necessitated a re-examination of the matter.

In conclusion, the Appellate Tribunal set aside the Order-in-Appeal and remanded the case for reconsideration by the jurisdictional Commissioner of Central Excise (Appeals). The Commissioner was directed to provide both parties with an opportunity to present their case and issue a clear, appealable order in accordance with the law. The appeal was allowed for re-examination and remanded accordingly.