2000 (11) TMI 405 - AT - Central Excise

Summary

Issues involved:
Classification of Machchar Jali and Hexagonal nets under Heading 39.25 of the Central Excise Tariff Act or Sub-heading 3926.90.

Detailed Analysis:
The appeal filed by M/s. A.R.D. Polypacks (P) Ltd. questioned the classification of Machchar Jali and Hexagonal nets under Heading 39.25 or Sub-heading 3926.90 of the Central Excise Tariff Act. The appellants contended that these products, made from plastic netting, are of general use and not specifically akin to fencing or builders wares. They argued that market inquiries were not conducted to establish the commercial parlance of these goods as builders wares. The appellants emphasized that the products are commonly used for packing purposes and can also offer some protection against insects, birds, and cattle. They further highlighted that the products are often stitched into shape by other manufacturers before being sold to customers. The appellants relied on legal precedents to support their argument that the onus of establishing the correct classification lies with the Revenue, and the Department failed to provide evidence that the products are known in the market as builders wares.

In response, the Department argued that the product profiles provided by the appellants indicate specific uses for Machchar Jali and Hexagonal nets, such as mosquito protection and fencing in gardens and parks. They contended that these specific uses align with the classification under Heading 39.25 of the Central Excise Tariff Act. The Department maintained that the products were rightly classified as per Note 11(e) and Note 11(f) to Chapter 39, which refer to fencing and articles similar to shutters and blinds, respectively.

Upon considering the submissions from both sides, the Tribunal referred to a previous decision in the case of Netlon India Ltd., where a similar classification issue was addressed. In that case, the Tribunal classified extruded meshes/nets under Sub-heading 3926.90 instead of 3925.30 or 3925.99, based on the lack of evidence showing specific uses for fencing or barriers. Drawing parallels, the Tribunal in the present matter found that the appellants were clearing plastic netting in rolls form, not as products specifically intended for fencing or similar purposes. Therefore, the Tribunal concluded that the products in question should be classified under Heading 39.26 and not as builders wares. As a result, the appeal filed by the appellants was allowed.

This detailed analysis of the judgment highlights the arguments presented by both parties, the legal precedents relied upon, and the Tribunal's reasoning for the final decision regarding the classification of Machchar Jali and Hexagonal nets under the Central Excise Tariff Act.