1997 (5) TMI 318 - AT - Central Excise

Summary

Issues: Interpretation of Notification No. 52/86 regarding classification of glass wool fabrics under Sr. No. 10 or Sr. No. 11 for duty exemption.

In this case, the Appellate Tribunal CEGAT, Mumbai, considered an appeal where the Collector (Appeals) had denied the appellant the benefit of entry at Sr. No. 10 of Notification No. 52/86 for glass wool fabrics manufactured by them. The Collector concluded that the appellant's non-woven fabric did not qualify as glass fabrics under Entry No. 10 but fell under Sr. No. 11. The Collector's reasoning was based on the classification of glass fabrics and articles thereof under heading 7014, which includes woven fabrics and glass fabrics as articles of glass fibers. However, the Tribunal noted that the specific mention of woven fabrics in the notification indicated that non-woven products were covered under Sr. No. 11. The Tribunal found that the Collector's reasoning did not provide sufficient support as non-woven fabric could also be considered an article of glass fiber and entitled to the exemption. Additionally, the Tribunal referred to Circular No. 2/88, where the Board had clarified that chopped stranded mats made of glass wool, categorized as non-woven fabrics, were eligible for full exemption under the notification.

Furthermore, the departmental representative argued that glass fabrics not impregnated, coated, covered, or varnished with plastics should be classified under Sr. No. 11, attracting a 20% duty. The Tribunal acknowledged that such glass fabrics could potentially fall under both Sr. No. 10 and Sr. No. 11 of the notification. In case of conflicting duty rates under different notifications, the assessee could choose the more favorable option. Therefore, the Tribunal held that the appellant was entitled to choose the benefit of exemption under Sr. No. 11, allowing the appeal and granting any consequential relief permitted by law.