9911796707
TMI Blog1997 (5) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... through their Clearing Agent to clear the value of the goods of Rs. 1,96,423.10 (CIF) imported from Taiwan and declared as Garment Accessories, Elastic cloth in running length (13 mm. width). The goods were assessed to duty under Chapter heading 5906.99 of the Customs Tariff Act, 1975 and Chapter heading No. 5905.90 of the Central Excise Tariff Act for CVD purpose at the rate of 100% (basic) + 45% (aux.) + 12% (CVD). The total duty assessed came to Rs. 3,45,131.05 on an assessable value of Rs. 1,97,896.25. The party had self assessed their goods and deposited a duty amount of Rs. 3,59,676.45. 2. On 14-3-1988 the Asstt. Collector, Customs Audit vide his letter dated 14-3-1988 issued a demand notice to the party under Section 28(1) of Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey further stated that similar type of material was imported under Bill of Entry 68 and the same had been released by the department by assessing under Chapter sub-heading 6217.10 and charged to duty @100% plus 40% plus CVD 15% and this heading covers articles of apparels and clothing accessories; that they being the manufacturer of ladies fashion garments and exporters of these products use the elastic cloths imported in the manufacture of ladies garments and elastic tape of 13 mm width in question is also being used in the market by other manufacturers in the manufacturing of protection garment i.e. brassiers for ladies and girls. 4. After giving them hearing, the Asstt. Collector rejected their prayer to a detail order and held that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He referred to Note 1 of Chapter 58 which states that - This Chapter does not apply to textile fabrics referred in Note 1 to Chapter 59, impregnated, coated, covered or laminated with rubber or to other goods of Chapter 59". He also referred to the definition of expression narrow woven fabric under Heading 58.06 which states that - (a) Woven fabrics of a width not exceeding 30 cm, whether woven as such or cut from wider pieces, provided with selvedges (woven, gummed or otherwise made) on both edges; (b) Tubular woven fabrics of a flattended width not exceeding 30 cm; and (c) Blas binding with folded edges, of a width when unfoled not exceeding 30 cm. He also referred to Heading 58.06 states : 58.06 N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ladies/girls protection garments and hence they are classifiable only under Chapter 59 and not under Chapter sub-heading 5806.20. He also submits that the department had also classified similar goods under sub-heading 6217.10 against the Bill of Entry No. 68 dated 9-1-1987. He also submits that the understanding in commercial and trade parlance would also indicate its classification under Chapter 59. 6. Ld. DR reiterates the departmental findings and justifies the classification under Chapter heading 58 on the ground when the material was Narrow Woven Elastic Fabric and the test report also says that the nylon rubber content is more than 5% and it satisfied the Chapter note 5 of Ch. 58. 7. We have carefully considered the submissions ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idth of Elastic Cloth, mm 17.0 4. Whether the Elastic cloth is fully woven in one piece of cut from wider piece Elastic cloth is fully woven in one piece. As can be seen from the Test Results, the rubber content is only 24%. Note I of Chapter 59 reads : 1. Except where the context otherwise requires, for the purposes of this Chapter the expression textile fabrics" applies only to the woven fabrics of Chapters 50 to 55 and Headings Nos. 58.03 and 58.06, the braids and ornamental trimmings in the piece of heading No. 58.08 and the knitted or crocheted fabrics of Heading No. 60.02". In the light of these two Chapter notes, it has to be determined as to whether the item is classifiable under Chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Chapter 50 to 55. It is stated by the appellant that the imported item is Elastic Cloth in running length and it is fully woven fabric consisting of warp 76% Nylon with weft 24% rubber. It is stated that item is a woven fabric in which the intermediate process of weaving the weft thread across the warp cord is an integral stage of manufacturing process. It is also stated by them that the item has undergone the process of covering nylon with rubber as per test report dated 20-8-1990 and therefore, the conclusion arrived at that the Elastic Cloth is without weft is not correct. We have noticed the test report placed by the appellant in this case and in terms of this test report, it is clear that the item is fully woven and that it has unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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