9911796707
TMI Blog2009 (12) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... vered along with interest. The lower authority vide the impugned order classified the goods under 6007 for the reason that 80% cotton + 20% wool knitted boys sweater were blended knitwear of cotton, wool, etc. and confirmed the demand of excess drawback sanctioned to the tune of Rs. 6,97,825/- along with interest. 3. On having been aggrieved by the above orders-in-original the applicant preferred the appeal before the jurisdictional Commissioner (Appeals) who after due consideration of facts, description and classification of the goods exported, rejected the same thus upholding demand of excess drawback with interest. 4. In the revision application, the applicant has made the following main submissions : 4.1 The Commissioner's order is also not a speaking order as he has not specifically given any findings on the following issues raised before him in the grounds of appeal as well as at the time of personal hearing held on 19-12-06. (i) Scope on Interpretation of Rule 3(b) of the Interpretation of CE Tariff Schedule. (ii) The scope of Rule 13(a) and 3(c) of the said Rules of Interpretation of Tariff Schedule. (iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended goods, yet it is well settled law that when the goods are made up of mixed material, the classification has to be resorted as per the material, the classification has to be resorted as per the material which gives the essential character of the final product. In this case cotton content is 80% and it is thus cotton that gives the essential characteristics of the end product. The purchasers have placed orders only for this blended goods. In this view of the matter the classification of such blended products has to be made as per Rule 3(b) of the Rules for the Interpretation of CET Schedule. This is the basic principle of classification of blended goods. The Commissioner did not consider this basic principle although vehemently urged before him both in the grounds as appeal as well as in the pleadings at the personal hearing held on 19-12-06. His one line findings contained in para 5.2 of the impugned order is totally baseless and opposed to well settled principles relating to classification of goods under CETA. 4.5 The Commissioner erred in not considering the contention of the applicant that Drawback means rebate of Customs & Excise Duties, the recovery of any erroneous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntaining wool/acrylic/nylon/ polyester fibres/viscose fibres/linen/cotton with or without other natural fibres like mohair/angora etc., when envat facility has not been availed. The specific description of the impugned goods under heading No. 6105 is as follows : 6105 - Knitted/crocheted cotton sweaters/cardigans/pullovers all sorts when cenvat facility has not been extended. 8. On plain and simple reading of above stature it is clear that S.S. No. 6105 covers only Cotton sweaters and S.S. No. 6007 covers knitwears (which includes sweaters) which are "blended". The export goods are not only of cotton but are blended with wool. 9. Govt. further notes that the applicant's main plea is that the proper scope of classification should be based on Central Excise Tariff Act and it should be decided within the scope of Interpretation of Rule 3(a), 3(b) and 3(c) of the Interpretation of Central Excise Tariff Schedule. In this regard Govt. 1st peruses the relevant Rules for Interpretation of the schedule statute to which is reproduced below for ready reference. [THE FIRST SCHEDULE - EXCISE TARIFF (See Section 2) GENERAL RULES FOR THE INTERPRETATION OF THIS SCHEDULE Classif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among the which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are not akin. 5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein; (a) camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character; (b) subject to the provisions of (a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions when read within the limits and scope of applicability of the same to the relevant drawback schedules shall only mean that what is of the "Most Important" and legal for the purpose of classification is the "precise and most - specific description" irrespective of any other provisions provided for ease of reference/guidance only. There is neither any requirement nor it would be proper to "jump" to next provision when the classification stands concluded by Rule 3(a) of general rules for interpretation of the Customs Tariff. 12. The exported goods are 80% cotton + 20% wool knitted boys sweaters i.e. sweaters blended with cotton and wool. The Heading 60.07 of the Drawback Schedule covers the knitwear blended with cotton and wool. Whereas on Heading 61.01 does not talk anything about the blended articles of apparels. As much the blended articles of apparels fall outside the scope of Heading 61.01 of the Drawback Schedule. 13. Govt. further finds that when above principle of most appropriate, precise and specific description is applied to the description as appearing in the relevant Drawback Schedule, as elaborated in the proceeding paras than it can be clearly i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
