2001 (4) TMI 265 - AT - Central Excise

Summary

Issues:
Classification of textile floor coverings under Chapter 56 or 57.

Analysis:
The case involved a dispute regarding the classification of textile floor coverings manufactured by the appellants under Chapter 56 or 57 of the Central Excise Tariff Act, 1985. The Asstt. Commissioner initially classified the goods under Chapter sub-heading 5703.90, leading to an appeal by the assessee. The Commissioner, relying on previous tribunal judgments, classified the product under Chapter sub-heading 5703.20. The Revenue appealed this decision, arguing that the product did not constitute a mixture of textile materials as defined under Section Note 2(a) of Section XI of the Central Excise Tariff. The Revenue contended that the goods were composite articles with distinct layers of polypropylene and jute, thus falling under Chapter sub-heading 5703.90. They emphasized that the exposed surface determines the essential character of the goods, and the jute content should not be considered. The Revenue also highlighted market interpretation and a TRU letter regarding the definition of "floor covering."

The Tribunal considered the arguments from both sides and analyzed relevant legal provisions and precedents. The Hon'ble Andhra Pradesh High Court's judgment in the case of Charminar Nonwovens Ltd. was cited, emphasizing the classification criteria for products containing multiple textile materials. The court clarified that the predominant textile material by weight determines the classification, and the ground fabric is not considered in cases of piled or looped surface products. The tribunal also referenced its own decision in the case of UNI Products India Ltd., affirming the classification of jute floor coverings under Chapter sub-heading 5703.20. The tribunal agreed with the previous decisions and rejected the Revenue's appeal, upholding the classification under Chapter sub-heading 5703.20 for the appellants' textile floor coverings. The tribunal found no reason to interfere with the impugned order and dismissed the appeal.

In conclusion, the dispute over the classification of textile floor coverings under Chapter 56 or 57 was resolved by the Appellate Tribunal, affirming the classification under Chapter sub-heading 5703.20 based on the predominant textile material by weight, as per relevant legal provisions and precedents cited during the proceedings.