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TMI Blog2007 (7) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... aulin seized on 15-5-1990; 2,21,058.25LMtrs. of canvas cloth seized on 23-5-1990; 842 pcs. of tarpaulin cloth seized on 24-5-1990 and proposing imposition of penalty. According to the department, the tarpaulin fell for classification under Chapter sub-heading 6301.00 of CETA, 1985 and if manufactured without aid of power, benefit of exemption from payment of duty under Notification No. 111/87-C.E. dated 10-4-1987 and Notification 65/87-C.E., dated 1-3-1987 was available. However, the tarpaulin manufactured by the appellants was alleged to have been manufactured with the aid of power and hence no exemption from payment of duty was available. As regards the remaining two items, the case of the department as reflected in the notice was that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee before the Tribunal which vide its order dated 21-9-2005 dismissed the appeal. The assessee challenged the dismissal before the Hon ble Bombay High Court by filing writ petition No. 816 of 2006 and vide order dated 15-2-2006 the High Court set aside the Tribunal s order of September, 2005 and remanded the case back to the Tribunal for fresh decision on merits and to pass reasoned order. This is how the appeal comes up before us. 2. We have heard both sides and record our findings as under. (i) Confiscation of tarpaulin : (a) The appellants do not dispute the liability to confiscation of the goods but the only prayer is that the redemption fine and penalty may be reduced having regard to the fact that the duty le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The goods, therefore, could not be said to have been processed without the aid of power. The conclusion that both canvas cloth and tarpaulin cloth are classifiable under 52.07 which is restricted to textiles processed without the aid of power would appear to be incorrect on this account. Further, having come to the conclusion that the above goods were not classifiable under Chapter 59, the correct classification for the canvas cloth and tarpaulin cloth processed with the aid of power would be 52.08. Collector has erred in not classifying the goods accordingly and confirming the duty payable thereon. He should have confiscated the goods under seizure and imposed penalties on the assessee. As seen from the above, the emphasis is on use of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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