2001 (1) TMI 342 - AT - Central Excise

Summary

Issues:
Classification of goods under Central Excise Tariff Act, 1985; Benefit of Notification No. 50/91; Jute content in manufactured goods; Dispute on classification under Chapter 57; Specific amount of duty in show cause notice.

Classification of Goods:
The appellant manufactured carpets with 40% jute content and 60% synthetic waste. Initially classified under sub-heading 5702.20 with the benefit of Notification No. 50/91, later disputed by authorities.

Benefit of Notification No. 50/91:
Authorities contended goods not jute carpets, thus outside Notification's purview. Appellate authority upheld decision due to synthetic element exceeding 60% by weight.

Jute Content and Classification Dispute:
Appellant argued goods fall under Chapter 57, hence covered by Notification. Authorities classified goods under 57.01, excluding jute carpets, leading to a dispute on classification.

Specific Duty in Show Cause Notice:
Appellant raised concerns over the absence of a specific duty amount in the notice, challenging the subsequent demand. Adjudication confirmed a duty of Rs. 5,38,664 without specifying the amount in the notice.

Judgment Analysis:
The Tribunal found the goods contained 40% jute fiber, meeting the Notification's criteria of over 35% jute content under Chapter 57, entitling them to the Notification's benefit. The absence of a specific duty amount in the notice did not invalidate the proceedings as the differential duty of 25% was clearly stated.

Conclusion:
The appeal was allowed, overturning lower authorities' decisions. The goods cleared by the appellant were deemed covered by Notification 50/91, as amended by Notification 32/93, during the specified period. The judgment clarified the jute content criteria and upheld the Notification's applicability despite the classification dispute under Chapter 57.