9911796707
TMI Blog2014 (12) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... ariff and the webbing equipment and tool hugs under sub heading 6307 of the Central Excise Tariff. The Canvas canopy/Tarpaulin pieces were specially designed for vehicles of various models. The appellant were not paying any duty in respect of these items by availing the full duty exemption under Notification No. 30/2004-C.E., dated 9-7-2004. The Department was of the view that canvas canopy, tool bags and web equipment being manufactured by the appellant, are parts or accessories of motor vehicle classifiable under heading 8708 and would not be eligible for exemption under Notification No. 30/2004-C.E. It is on this basis that a show cause notice dated 5-12-2007 was issued to the appellant as well as to their partner Sh. Sudhir Kumar Aggarw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. Against this order of CCE (Appeals) these two appeals have been filed. 2. Heard both the sides. 3. Sh. B.K. Singh, Advocate, the learned counsel for the appellant, pleaded that the appellant manufacture specially shaped canvas tarpaulin canopies for different models of lorries, tool bags and web equipment of textile material, that canvas canopies are made out of canvas tarpaulin, that the canvas canopies, though specially cut into shapes to cover goods loaded in open lorries of different models, flat not three dimensional, that while such tarpaulins meant for vehicles are covered under heading 6306, that the other items, tool bags and web equipments of textile material are covered under heading 6307, that all these items are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectangular sheets, hemmed along sides, fitted with eyelets, cords, straps etc., it still remains tarpaulin, that the ratio of this judgment is squarely applicable to this case are in this case the canvas tarpaulin sheets have just been cut into the required shape to cover the goods loaded in open lorries of certain models, that since tarpaulin canopies are correctly classifiable under heading 6306, the same would be fully exempt from duty under Notification No. 30/2004-C.E. as there is no dispute that the same are of textile material and no input duty credit has been taken, that the reason adopted by the Department for classifying this items as "motor vehicles accessory" under heading 8708 is without any basis, as the tarpaulin canopies ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Tariff is patterned on HSN heading 6307. As regards tool bags, the same, in our view, would be covered by heading 63.05 as this heading is also patterned on HSN heading 63.05 and accordingly to HSN explanatory notes to this heading, the same covers textile bags and sacks of all kind for packing of goods for transport, storage, sale etc. Since both of these items are covered by Chapter 63, the same would be exempt from duty under Notification No. 30/2004-C.E., as no input duty Cenvat credit has been availed. 7. As regards the canvas canopies specially designed for lorries, we find that these canopies made from canvas tarpaulin, are basically the tarpaulins cut into special shapes for covering goods loaded into open lorries of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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