2000 (10) TMI 510 - AT - Central Excise

Summary

Issues:
Classification of plush fabrics under different tariff headings based on the process undergone.

Analysis:
The judgment involves 18 appeals challenging the classification of plush fabrics under specific tariff headings. The dispute arises from the interpretation of Notification No. 109/86 dated 27-2-1986, which determines the rate of duty applicable to plush fabrics based on corresponding woven fabrics falling under particular chapters. The assessees claim that the corresponding woven fabrics are described under sub-heading 5507, while the Revenue argues for classification under Chapter Heading 5508.

Following a change in Tariff Entries with effect from 1-3-95, the assessees claim classification under sub-heading 5801.31, while the Revenue insists on classification under sub-heading 5801.32. The Commissioner (Appeals) upheld the Revenue's classification in all appeals.

The determination of the "corresponding woven fabrics" is crucial, with the process undergone by the contested fabric being a deciding factor. The judgment references the Supreme Court's ruling in Siddeshwari Cotton Mills case, emphasizing the principle of ejusdem generis in interpreting Tariff Entries with similar nomenclature. The process on the Comet Rolling Machine was equated to tentering/stentering, influencing the applicable duty rates.

Citing precedents like the Siddeshwari Cotton Mills case and Maharashtra Fur Fabrics Ltd. case, the appellant argues that the process on the machine does not meet the criteria of "any other process" as per the Tariff Entry. The Supreme Court's guidance on processes leaving a lasting impression on fabrics is highlighted to support the appellant's position.

Ultimately, the Tribunal concludes that the process on the Comet Rolling Machine does not qualify as "any other process" under the relevant Tariff Entry. Consequently, the benefit of the notification is upheld for the plush fabrics, with classification under sub-heading 5507 in the first part and sub-heading 5801.31 in the second part.

In conclusion, the appeals are allowed, providing consequential relief if applicable.