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TMI Blog2004 (5) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... .06 or under 5901.10 of Central Excise Tariff Act. - Commissioner (Appeals) in the impugned order confirmed the finding of the Assistant Commissioner who held that the said goods are classifiable under Heading 52.06. Revenue disagrees. Wants it under Heading 5901.10. Cross-objections have been filed by the respondents. 2. The case has a chequered history. A little background helps. 3. The respondent-company manufactures dyed D/C book binding cloth and clears it under Heading 52.06 as cotton fabric. Show cause notices were issued to them for its classification under 5901.10 as the product was coated with gum or amylaceous substance (starch) and other chemicals and is sold in the market as book binding cloth. It is used for book binding a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided the classification under 52.06 and dropped the demands vide his order dated 7-9-2001. This order was again challenged by the department before the Commissioner (Appeals) who rejected the department s appeal and confirmed the classification of the goods under 52.06. Hence the present appeal by the Revenue. 8. On remand, the adjudicating authority, after going through the test report of CRCL and after a lot of introspection, this time decided that the goods are correctly classifiable under 52.06. Inter alia he held that the fabrics which are not coated but only backfilled are to be classified under 52.06. The Assistant Commissioner referred to the meaning of coating and stated that coated fabrics are those which have permanent stiffn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are book binding cloth and that the lower authority erred in not following the decision of the Tribunal in MR Textile s case cited supra. 10. The Commissioner (Appeals) in the impugned order confirmed the findings of the adjudicating authority. He held that the Tribunal vide its order dated 22-11-2000 has remanded the matter for retest of the sample and if the test results showed that there was no permanent stiffness and the fabrics are not impervious to water, the Assistant Commissioner was bound to classify the goods under 52.06. The Commissioner (Appeals) also observed that since the department has not filed any appeal against the Tribunal s remand order. It is his contention that the adjudicating authority has merely followed the dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 997 (95) E.L.T. 377 (T) 12. We have heard Shri Hitesh Shah, SDR for the Revenue and Shri Pankaj Shah for the respondent-company. 13. The learned SDR reiterated the submissions made in the appeal memorandum. He strongly contended that the issue of classification of book binding cloth is well settled and is covered by the decisions cited supra. In all these cases the Tribunal specifically held that book binding cloth is classifiable under 5901.10. He also argued that the decision of the Tribunal in Bhor Industries case is affirmed by the Hon ble Supreme Court. He contended that the product in question is admittedly book binding cloth and the correct classification is under Chapter 59 only. The ratio of the decision in Sunita Textiles, Sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion overrules a general description in the cardinal principle of classification of goods. In the instant case, the goods are described as dyed D/C binding cloth . The Heading 59.01 at the relevant time read as under :- 59.01 - Textile fabrics coated with gum or amylaceous substances of a kind used for the outer covers of books or the like; tracing cloth; prepared painting canvass; buckram and similar stiffen textile fabrics. 5901.10 - Of cotton. 17. The above description clearly shows that book binding cloth is covered under 59.01. The other requirement of Heading 59.01 is that the fabric should be coated with gum and amylaceous substances. This requirement is confirmed by the test report of CRCL. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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