9911796707
TMI Blog2001 (1) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... or the period from 1-4-1992 to 15-1-1997, for imposition of penalty and for confiscation of the fabric seized on the day of visit on the ground that they had manufactured and clandestinely removed industrial fabric (Liner Fabric and nylon Duck Fabric) without payment of duty; that the Commissioner, under the impugned order confirmed the duty besides imposing penalty and confiscating the goods holding that liner is having a specific name and specific end use and is separate from the textile fabric; that it is meant for non-apparel purposes having industrial/technical uses. The Commissioner classified the product under sub-heading No. 5909.00 up to 25-5-1995 and sub-heading 5911.90 thereafter, relying upon Note 7(b) to Chapter 59. The learned Advocate, further, submitted that as per Note 1 to Chapter 59 the expression 'Textile Fabric' applies only to the woven fabrics of Chapter 50 to 55 and Heading No. 58.03 and 58.06; that once the goods are accepted to be textile fabric they automatically fall within the purview of term 'textile's article' which is mentioned in Note 7(b) to Chapter 59; to fall under Heading 59.11, the product should be textile product and articles for technical us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry Notes to HSN below Heading 59.11, according to which "The textile products an article of this heading present particular characteristics which identify them as being for use in various types of machinery, apparatus, equipment or instruments or as tools or parts of tools." The learned Counsel contended that for falling under this heading the textile article must be used on machine which is not so in their case as it is used as separator for the purpose of storing rubberised material. The learned Advocate also referred to the Nagpur Collectorate Trade Notice No. 31/93, dated 8-12-1993 in which Board's Order under Section 37B of the Central Excise Act was mentioned ordering classification of Grey Cotton Canvas, Cotton Ducks, Cotton Tyre Cord Fabrics and Cotton Belting Fabrics under Heading 52.05 of the Tariff in view of the decision of the High Court in the case of Simplex Mills Co. Ltd. v. C.C.E., 1993 (49) ECR 147. The learned Advocate further mentioned that the decision in the case of Simplex Mills is not applicable to the present matter as in that case the goods were used for straining or filtering purposes whereas the impugned goods is only for storage purpose; that this is ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Appellant firm, in his statement recorded on the same day, admitted that the impugned product is 'industrial fabrics'; that the impugned product is manufactured as per the specification of weight, length, width and size of industrial end users and is meant for industrial use only. The learned SDR, further, submitted that the decision in the case of Simplex Mills Co. v. C.C.E., Nagpur, 1993 (49) ECR 147 (T) is applicable to the facts of the present case; that as per "The New Encyclopaedia of Textiles", 'industrial fabrics': A large and important groups of textiles which includes woven and non-woven clothes vital to many industries, ranging from primitive agriculture to get transportation. Industrial fabrics are largely Specification Fabrics since they are produced by specification set by the large corporations, Institutions, or Government agencies which buy them. Such fabrics may be roughly divided into four categories : Direct Use : This group includes specification clothes which are used directly for end products, such as boat sails baggings, coverings, tentings, belting, webbing, book binding etc. Also included are rugs, upholstery and drapery fabrics produced to specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the classification under Chapter Heading 59.09 cannot be ruled out. The learned Assistant Collector in the order in original, annexed in assessee's appeals, has noted that the products are having specific use as belting or as filter cloth. Therefore, the assessee's contention that the goods is put to industrial use only after the process of impregnation is not substantiated and not tenable." 7. The learned SDR also mentioned that impugned goods 'liner', having a specific name and specified end-use is separate from other textile fabrics and is particularly meant for specified industrial use; that Shri Khanna in reply to question "Explain the types of industrial units who are purchasing the fabrics" said "our fabric is mainly used by the tyre industry, V-belt and transmission belting units"; that it is apparent that 'Liner' is manufactured by the Appellants in the finished state ready for use as such and it is, therefore, 'made up goods' as per Note 5(b) to Section XI. The learned SDR also referred to Section 37B Order No. 48/2/97-CX, dated 17-4-1997 [1997 (92) E.L.T. T116] wherein the Board directed the grey cotton tyre cord fabrics, grey belting cloth, grey filter clo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be termed as made up article. It has not been disputed by the Revenue that the impugned product is used by the manufacturers of rubber tyre, V-belt, Conveyor belt or transmission belt. The impugned product is kept between the two layers of rubber after fabric has been skimmed with rubber so that one layer of rubber does not come in contact with another layer of rubber and get stuck together. For falling the product under Heading 59.11 (or 59.09) the textile product should be of a kind suitable for industrial use/technical uses. According to Fairchild's Dictionary of Textiles 'Industrial Fabric' is "a broad term for fabric made of any fibre(s) and used for non-apparel or non-decorative uses. They either are used by themselves or treated for use in industrial products, as the base for other materials, or for marine uses. Outdoor fabrics, such as awnings, fabrics for use with plastics, tyre cord, are a few. They fall into several classes : (1) a broad group including fabrics employed in industrial processes, e.g. filtering, polishing, absorption; (2) fabrics combined with other materials to produce a new type of product, e.g., rubberized fabric for hose, belting, tyres, fabric c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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