1982 (12) TMI 213 - AT - Central Excise

Summary

Issues involved: Central Excise Tariff classification for High Density Polyethylene Tapes (HDPE tapes) and applicability of duty exemptions under various notifications.

Summary:
The case involved the correct classification of HDPE tapes under the Central Excise Tariff and the eligibility for duty exemptions. The appellants argued that the HDPE tapes should be classified as articles of plastic under Item 15A(2) and be exempt from duty under Notification No. 68/71-C.E. The Department contended that the tapes should be classified as man-made yarn under Item 18 and were not eligible for the exemption due to non-compliance with Chapter X procedure. The key point of contention was whether the HDPE tapes should be considered as filament yarn or not.

The Tribunal considered the definitions provided by the ISI in the Glossary of Textile Terms, which defined filament yarn as a single filament of sufficient size to function as yarn in textile operations. The Tribunal noted that HDPE tapes, being split film yarns used for weaving fabrics, could be considered as yarn. However, the appellants argued that the tapes were not filament yarn as per trade understanding. The Tribunal agreed with this argument, stating that the HDPE tapes did not fit into any specific category of man-made fibres and yarn under Item 18. As HDPE is a plastic raw material, the tapes were classified as articles of plastic under Item 15A(2) and were exempt from duty under Notification No. 68/71-C.E.

Therefore, the appeal was allowed on the grounds that the HDPE tapes were not man-made filament yarn falling under Item 18 but were articles of plastic falling under Item 15A(2) and exempt under Notification No. 68/71-C.E.