9911796707
TMI Blog1999 (5) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... mand of duty. These appeals of Revenue are directed against that Order-in-Appeal. 2. The appeals seek restoration of the original classification under sub-heading 5602.90 and reiterate the grounds relied upon in the Order-in-Original. It has been pointed out that fibres contained in the impugned items are loose at the pre-latexing stage and could easily be peeled off by application of some force and they become fit for use as floor covering only after they are latexed. Reliance has also been placed on the HSN Explanatory Notes to Chapter 57 that felt when backed by rubber and plastic gives rise to floor covering. Therefore, at the stage before latexing the item is felt and not floor covering. 3. The respondents have filed cross-objectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the description of sub-heading 5602.90 and that there is no stage where the item acquires the intermediate identity as semi-finished floor covering; either it is felt (prior to latexing) or after latexing becomes floor covering. The Assistant Collector has also relied on the definition given in Fairchild s Dictionary of Textiles, 6th edition. Shri Sangia also submitted that the Tribunal has already held in the case of United Felts and Carpets v. Collector of Central Excise, 1996 (81) E.L.T. 609 that semi-finished floor covering of felt is classifiable as felt under sub-heading 5602.90 of Central Excise Tariff and not as semi-finished floor covering of felt falling under sub-heading 5702.00 and 5702.90 and that there is no stipula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting of a web of textile fibres the cohesion of which has been enhanced by a stitch-bonding process using fibres from the web itself and that after dry punch the product becomes a finished product and that there was no stipulation in the HSN Notes that both ends should be covered by fibre to treat the item as felt. He submitted that in the instant case as the densely punched web does not emerge on account of change in manufacturing process, the decision is distinguishable on account of this reason. During the period covered by the impugned order, loosely punched web of Polypropylene fibre was directly punched with jute fabric backing bringing into existence semi-finished floor covering. He submitted that the Collector has correctly held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods were marketable, while the respondents had produced evidence both of technical authorities and trade that the item in the stage at which it was cleared was not recognised as felt. He, therefore, submitted that the respondents case is distinguishable from the Supreme Court decision in Andhra Pradesh State Electricity Board case, 1994 (70) E.L.T. 3 (S.C.), inasmuch as in the Andhra Pradesh State Electricity Board case it was an admitted fact that the goods in question, namely, electricity poles, were being sold by other parties, thus, the marketability of the item was not in dispute. In the instant case, it is on record that the goods will not be recognised as felt in the condition in which they are cleared by the respondents. In thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for use. It is in crude, elementary and unfinished form. The jute fabric is protruding from both edges. A number of operations such as cutting, trimming, finishing etc. are to be carried out before it can be marketed. In this stage, the item becomes marketable and ready for removal only after the remaining processes including latexing are carried out. As the item does not become goods before completion of these processes, it is not liable for assessment to Central Excise Duty either as felt under sub-heading 5602.90 or as floor covering under sub-heading 5702.90. He, therefore, submitted that the impugned order is entirely according to law and facts of the case and is required to be confirmed. He also submitted that even if it is held that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
