9911796707
TMI Blog2014 (9) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... .90 - There is clear finding of the fact by the Ministry of Commerce and Industry, while giving its final finding vide order dated 7-6-2005 that hooks and loop tapes are classifiable under 58.06. The said finding stand accepted by the Government of India and carry a lot of weight. It stands observed in the said order that there are 4 producers of domestic like product in India. The application stand filed by M/s. Sky Industries Ltd. and the other producers i.e. Magic Fasteners Pvt. Ltd., Delhi and M/s. Siddharth Filament Yarn Ltd. and M/s. Siddharth Magic Tape Pvt. Ltd. have supported the application. Accordingly, the authorities has recommended the Anti-Dumping Duties to be imposed by the Central Government on all imports of narrow woven fabrics having pile woven made up of man-made fabrics. They are also known as hook and loop tapes fasteners or Velcro tapes or fasteners, tapes falling under Customs Heading 58.06. Proper classification of hook and loop tape fasteners of nylon and polyester yarn being manufactured by woven fabrics would fall under Chapter Heading 58.06 of the Central Excise Tariff and not under Chapter Heading 98.06 as held by the Commissioner. Accordingly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e narrow woven fabrics. Therefore, the Tribunal felt that the fact of goods having selvedges is required to be inquired into. Accordingly, while setting aside the order impugned before it, the Tribunal made the following directions :- 5. This Tribunal in the case of Zip Industries Ltd. v. Commissioner of Central Excise, Chennai-III (supra) has held that Rule 1 of the Rules for Interpretation of the First Schedule to the Central Excise Tariff Act, 1985 provides that for legal purposes, classification shall be determined according to the terms of the heading and any relative Section or Chapter notes, that Chapter Note 6 to Chapter 58 of the tariff requires that for being classified under Heading 58.06, the narrow woven fabrics should have selvedges on both the edges and that since the polyester tapes (zipper tapes) do not have selvedges on both the edges, they do not satisfy the requirement of chapter note 6 and hence the same cannot be classified under 58.06. This decision of the Tribunal has been upheld by the Hon ble Supreme Court, vide its judgment reported in 2002 (141) E.L.T. A279. Therefore, the classification of the goods, in question, has to be decided on the basis of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ach consists of narrow woven fabric with raised surface (napped type loops). It is wholly composed of multi-filament yarns of nylon (polyamide). It has the characteristics of hook loop tape fasteners. He also invited attention to (i) IS: 8156-1981 (specification for fasteners - hook loop tape-synthetic) and (ii) such products are covered under Chapter sub-heading 96.06 and not under chapter sub-heading 58.06 of Central Excise Tariff. As such, by relying upon the above report of the Chemical Examiner, and by taking note of the other facts, he held that hooks and loop fasteners as falling under Chapter 9606.90 by rejecting the appellant s claim of classification under Heading 58.06. 4. The appellant s grievance is that Tribunal in remand order, referred (supra) clearly directed that samples of the finished goods should be sent to CRCL for obtaining an opinion as to whether the tapes in question has selvedges on both the edges. While dealing with the above stand of the appellants, the Tribunal observed that this is a question of fact which has to be ascertained by drawing samples and by obtaining CRCL opinion. The Chemical examiner in his report has nowhere opined about the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elvedges on one side and slightly wavy uneven selvedges on the other side. The selvedge on either side is clearly discernible from the rest of the fabric and they prevent any yarn from unraveling from either of the sides of the woven fabrics. It has also been observed that when these unfinished Hook Tape and Loop Tape are pressed together, they fail to hold each other. 7. As is clear from the above observation, the tapes in question admittedly have selvedges on both the sides, which are discernible from the rest of the fabrics and they prevented any yarn from unravel from other side of the woven fabrics. If according to the observations of the adjudicating authority himself the tapes in question have selvedges, at the unfinished stage and there is no finding that such selvedges were subsequently cut before finishing the fabrics in question, it has to be held that the product was manufactured with selvedges on both the sides. 8. Apart from the above, we note that there are other units manufacturing identical products i.e. hooks and loop fasteners which are commonly known as Velcro. Learned advocate has shown us the letters written by their jurisdictional Central excise author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r report dated 5-5-09 have opined that the hook and loop tape as also fastener tape has selvages to the extent of 3.98 mm and 4.02 mm on each side. Further, the appellants have also got the report from the Synthetic and Art Silk Mills Research Associations, SASMIRA, who vide their report dated 19-11-2008 have clearly observed that samples have selvages on both the sides of the hooks and loop tape and the samples submitted can be termed as narrow woven fabric made out of man-made fabric. Inasmuch as the said reports clearly establish the presence of selvages on each side of the fabrics in question and report of the Chemical examiner does not refer to presence or absence of selvages, we deem it proper to adopt the report of Textile Committee and of SASMIRA. Consequently, the product in question has to be held as classifiable under Heading 58.06. 12. At this stage, we may also take into consideration the decision of the Hon ble Madras High Court in the case of Sky Industries Ltd. v. CCT, Chennai [2012 (276) E.L.T. 353 (Mad.)]. Though the said decision relates to leviability of tax under Tamil Nadu General Sales Tax Act, 1959, the disputed issue before the Hon ble High Court was t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
