2000 (8) TMI 540 - AT - Central Excise

Summary

Issues: Classification of "Jute Webbings" under Central Excise Tariff

Issue 1: Classification of "Jute Webbings"
The issue in this appeal pertains to the classification of "Jute Webbings" under the Central Excise Tariff. M/s Ludlow Jute Mills filed classification lists claiming classification under sub-heading 5306.29, while a show cause notice alleged correct classification under Sub-heading 5806.90. The Asstt. Collector classified Jute Webbings under 5806.90 as narrow woven fabrics, considering HSN notes, the nature of goods, and use as tape strapping material.

Issue 2: Commissioner (Appeals) Decision
In appeal, the Commissioner (Appeals) upheld the classification under 5806.90, stating that "Jute Webbing" is narrow woven fabrics per the chemical examiner and Jute Commissioner's confirmation. The Commissioner applied Rule 1 for classification, noting that narrow woven fabrics are specifically included in Heading No. 58.06, as per HSN chapter Notes, and the characteristics of the goods align with narrow woven fabrics.

Issue 3: Appellant's Grounds in Appeal
The appellants contended that the Commissioner (Appeals) misconceived the classification, ignoring the observations of the Chemical Examiner and Jute Commissioner. They argued that narrow woven fabrics, as per HSN explanatory notes, should meet specific criteria, which "Jute Webbing" does not fulfill, unlike true narrow woven fabrics under Chapter 58.

Issue 4: Chemical Examiner and Jute Commissioner Reports
The chemical examiner's report described "Jute Webbing" as not meeting the characteristics of narrow woven fabrics under Chapter 58. The Jute Commissioner opined on the classification under Heading No. 53.06 instead of 58.06. The appellants relied on the HSN as a guide for classification, emphasizing the support from the Chemical Examiner's report and Jute Commissioner's clarification.

Issue 5: Appellate Tribunal Decision
The Appellate Tribunal found that the grounds in the appeal were similar to those before the Commissioner (Appeals) and upheld the classification under 5806.90. They noted the width and selvedges of the goods align with the criteria for "narrow woven fabrics" under HSN notes. The Tribunal highlighted the end use of the entity under classification as straps, supporting the classification under 5806.90 based on the applicability and use indicated by HSN.

Conclusion
The Appellate Tribunal confirmed the classification of "Jute Webbings" under 5806.90, dismissing the appeal. The Tribunal emphasized that the entity did not fall under chapter heading 53, as it was not understood as "jute-fabric" but as straps or ribbons. The confirmation of the classification was based on the findings related to width, selvedges, and the end use of the goods.