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TMI Blog1989 (3) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... after giving them necessary shape and size of the woven sacks except stitching operation . 2. The Show Cause Notice to the party, relying on Rule 2(a) of the Rules for the Interpretation of the Schedule to the Central Excise Tariff 1985 (5 of 1986) alleged that the aforesaid goods being in the form of cut to the size and shape of woven sacks, fell within the purview of incomplete unfinished woven sacks classifiable under heading 63.01 of sub-heading 6301.00. 3. The Assistant Collector held that such pieces of fabrics are cut to specific length and size of woven sacks and bags and therefore, correctly classifiable under sub-heading 6301.00. This view was also upheld by the Collector of Customs and Central Excise (Appeals), New Delhi and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be considered as blanks of sacks. The Departmental Representative reiterated that these are semi-finished goods which have assumed the essential characteristic of bags. 9. On the other hand, the learned JDR also submits that the point made by the appellants regarding Note 5(a) of Section XI of the Tariff was not raised before the Assistant Collector. Nor did the process of manufacture of the impugned goods come in for detailed consideration. There is no finding whether the products can be considered as rectangular. It is submitted that tubular pieces cannot be considered rectangular or square. It is, however, conceded that on this factual aspect, there is no finding of the lower authority. Therefore, it is submitted on behalf of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , having the approximate shape or outline of the finished article or part and which can only be used, other than in exceptional cases, for completion into the finished article or part. 13. On the other hand, appellants rely on Section Note 5 of Section XI which reads as under: For the purposes of this Section, made up means: - (a) Cut otherwise than into squares or rectangles; (b) Produced in the finished state, ready for use (or merely need separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, table clothes, scarf squares, blankets). (c) Hemmed or with rolled edges or with a knotted fringe, but excluding fabrics, the cut edges of which have been prevented from unravelling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants that the fabrics, although tubular in nature are cut to size for finishing or completion. All that is required is stitching at the ends. The goods therefore can be said to have the essential character of complete or finished goods. If the fabric was to be cleared in pieces of running length which were not related to the exact specification of the woven sacks and if the finishing involved anything more complicated or elaborate than mere stitching at the end, one could dispute that they were not goods having the essential character of complete or finished goods. The facts in this case, however, are against the appellants. 17. In the light of the above discussion, I hold that the goods are correctly classifiable under heading 63.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icles. This is from a prima facie reading of the heading. Now, let us see the matter from the meaning assigned to the expression made up for the purpose of Section XI in which Chapter 63 occurs. A hollow tubular fabric cut into required lengths cannot be said to be cut into squares or rectangles . They are, therefore, cut otherwise than into squares or rectangles . But this factor by itself is not determinative of the classification. The fabrics are not articles in the finished state ready for use without sewing or other working. Unless the bottom is firmly stitched, the tubular fabric cannot be said to have attained the shape of a sack. The present goods have not been stitched at the bottom. This operation is to be done elsewhere. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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