1999 (8) TMI 536 - AT - Central Excise

Summary

Issues:
Classification of nylon bristles for brushes and nylon fishing lines below 1 mm cross-sectional dimension under different tariff schedules pre and post 1-3-1986.

Analysis:
1. Classification under the erstwhile Central Excise Tariff:
The appellants argued that pre-1-3-1986, the products should be classified under TI 15A(2) based on a previous Tribunal decision. They contended that post 1-3-1986, the products should be classified under CET sub-heading 3922.90 as articles of plastics. They relied on the Supreme Court's decision in BPL Pharmaceuticals to support their claim. The appellants emphasized that the products are not marketed as textile material and cited industry standards to argue against classification under Chapter 54. They also argued for the extension of Modvat credit for duty paid on inputs.

2. Opposing Arguments:
The Revenue argued for classification under TI 18 pre-1-3-1986 and under CET sub-heading 5406.19 post 1-3-1986. They referred to past Tribunal decisions and industry use of nylon yarn for industrial purposes. The Revenue relied on HSN Explanatory Notes and textile material definitions to support classification under Chapter 54. They contended that the disputed products met the criteria for textile materials and should be classified accordingly.

3. Judgment and Analysis:
The Tribunal found that the previous order in the appellants' case under TI 15A(2) pre-1-3-1986 was binding, setting aside the demand under TI 18. For classification under CETA 1985, the Tribunal analyzed the entries for plastics and synthetic monofilament under Chapter 54. They considered definitions of textile materials and HSN Explanatory Notes, concluding that the products fell under CET sub-heading 5406.19 post 1-3-1986. The Tribunal rejected the appellants' argument against textile material classification, citing industry use and international standards. They upheld the Revenue's classification and allowed the extension of Modvat credit for duty paid on inputs.

In conclusion, the Tribunal upheld the classification of nylon bristles and fishing lines under CET sub-heading 5406.19 post 1-3-1986, based on industry standards and international understanding, while allowing the extension of Modvat credit.