2020 (3) TMI 254 - AT - Central Excise

Classification of goods - HDPE/PP Tapes/fabrics - shading net fabric - whether classified under CETH 60069000 chargeable to duty @ 8% or classifiable under CETH 3926 9099 chargeable to duty @16%? - HELD THAT - Tribunal has been consistently holding such material to be falling under Chapter 60 of CETA - In the case of Sunpack 2016 (1) TMI 919 - CESTAT CHENNAI Tribunal has elaborately discussed the issue and have come to the conclusion that the instant goods are classifiable under 6005 9000. The Tribunal was concerned with a knitted fabric made of synthetic yarn made of strips less than 5mm. Thus, the Shading Net manufactured by the appellant is rightly classifiable under CETH 6005 9000 - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of "shading net fabric" under Central Excise Tariff Act, 1985

Analysis:
1. The main issue in this case was the classification of the "shading net fabric" manufactured by the appellant under the Central Excise Tariff Act, 1985. The appellant classified the product under CETH 60069000 at 8% duty, while the Department argued for classification under CETH 3926 9099 at 16% duty.

2. The appellant's counsel contended that the fabric, made from HDPE granules, should not be classified under Chapter 39 as plastic materials. They argued that similar fabrics made from plastic raw materials are classified under different headings such as 56.03 and 54.03. The appellant relied on specific judgments and the ratio of CCE v. Lumel Shades P Ltd to support their classification under Chapter 60, emphasizing that the plastic strip used was less than 5mm in width, making it a textile material.

3. The Department's representative reiterated that the fabric does not fall under the definition of "textile" as it is made of plastic materials, citing Section Note (h) and Chapter Note (3) to Chapter 60. They referred to the case of Raj Pack Well Ltd. to support their argument that goods made of plastics should be classified under Chapter 39.

4. After hearing both sides and examining the records, the Tribunal found that previous judgments consistently classified similar materials under Chapter 60. They referenced the case of Sunpack where knitted fabric made of synthetic yarn less than 5mm wide was classified under 6005 9000. The Tribunal also considered certificates from specialized agencies confirming the classification of the appellant's product as a technical textile under Chapter 60.

5. The Tribunal emphasized the importance of specific entries over general entries in classification, citing the Rules of interpretation to the Central Excise Tariff Act, 1985. They concluded that the "shading net" manufactured by the appellant is rightly classifiable under CETH 6005 9000, setting aside the impugned orders and allowing the appeals with consequential relief.

6. In summary, the Tribunal's detailed analysis of the classification issue, considering previous judgments, technical specifications, and the interpretation of relevant tariff provisions, led to the decision that the appellant's "shading net fabric" should be classified under Chapter 60 of the Central Excise Tariff Act, 1985.