9911796707
TMI Blog1994 (4) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... ound that they were processed fabrics and also relied upon the ratio of the judgment of Madras High Court in the case of Assistant Collector of Central Excise, Erode and Another v. M/s. Yarn and Cloth Processing Centre [1986 (24) E.L.T. 281]. This view was upheld by the Collector (Appeals) in the impugned order. Hence, this appeal. 2. Shri Venugopalan, learned Advocate, appearing for the appellants submitted that jacquered towels are manufactured out of bleached/dyed yarn of various colours and the towels (towelling) that emerge out of the loom contain designs made out of this yarn and after emerging from the loom the towels do not undergo any further process. Since they are not subjected to further process they should be classified under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 88/69 are similar to the description in the tariff entry. While interpreting the notification High Court held that merely because it is not subjected to dry finishing operation, or wet finishing operation, fabric made out of bleached and/or dyed yarn cannot be treated as grey fabric. She said that applying the ratio of the decision the item in question is appropriately classifiable under Heading 5802.12. She said that Department has not relied upon H.S.N. while deciding the issue of classifi- cation but decided with reference to tariff entries in respect of jacquered terry relying upon the decision of Madras High Court but only Collector (Appeals) in the impugned order has made reference about H.S.N. and said that Board s clarif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under 5802.11 as claimed by the party. 5. In the result, we set aside the impugned order and, accordingly, the appeal is allowed. 6. [Dissent per : S.D. Mohile, Member (T)]. - I have gone through the order recorded by the Hon ble Member (J) but with due respect I am not able to agree with the finding of the learned Brother. 7. In my opinion, the ratio of the Madras High Court decision is very much applicable to the facts of the present appeal, even though the High Court decision related to the old tariff. 8. In the present appeal as well as in the case decided by the Madras High Court, towels had been manufactured out of dyed, bleached yarn and the issue was whether such towels manufactured out of dyed, bleached yarn but not subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Madras High Court, the Department was claiming that such towels were `Grey and the appellant was claiming that these were `processed and in the present appeal, the Department has taken the opposite stand will not make any difference regarding the applicability of the ratio of the Madras High Court decision to the facts of the present case. 12. On this view of the matter, I propose that the appeal deserves to be rejected. Dated : 6-12-1993 Sd/- G.A. Brahma Deva Member (J) Sd/- S.D. Mohile Member (T) DIFFERENCE OF OPINION 13. In view of the difference of opinion between the Hon ble Member (J) and the Hon ble Member (T) the matter is submitted to the Hon ble President for reference to a third Member on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5802.11 is clearly satisfied by the aforesaid goods whereas the Tariff Heading 5802.12 speaks of the cotton fabric subjected to further processing. He submits that the reliance placed by the learned Technical Member on Madras High Court s judgment in the case of ACCE, Erode v. Yarn Cloth Processing Centre, Erode [1986 (24) E.L.T. 281 (Madras)] does not apply to the present case because in that case the High Court was concerned whether the goods under consideration there were `grey fabric or `bleached and dyed fabric . It was held in the said judgment that the goods manufactured from `bleached and dyed yarn would be treated as `bleached and dyed fabric in terms of the notification and not as `grey fabric . He, therefore, submits that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 85 are quite clear and unambiguous. We have to strictly construe them and should not bring any extraneous matters such as concept of `grey fabric etc. HSN notes are also not applicable in view of the Scheme of CETA, 1985 under the aforesaid Headings being different from the Scheme of HSN. Accordingly, I hold that the learned Judicial Member is correct in his view that the jacquered towels made out of dyed/bleached yarn and not subjected to any further process after the manufacture are classifiable under Heading 5802.11 Dated : 11-4-1994 Sd/- P.C. Jain Member (T) FINAL ORDER 18. In the light of the majority view, it is held that jacquered towels made out of dyed/bleached yarn and not subjected to any further process are clas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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