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TMI Blog2015 (8) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... use notices to the respondents proposing to classify the goods FIBC under Chapter 3923 2990 as articles of plastics. The adjudicating authority in Order-in-Original classified the FIBC under Chapter 3923 2990. On appeal by the respondents, the Commissioner (Appeals) in the impugned orders allowed the appeals and classified the goods under Chapter 6305 3200 of CETH and set aside the adjudication order. Hence Revenue has preferred these appeals. 3. In Appeal Nos. E/140/2012 and E/147 to 150/2012, the adjudicating authority issued show-cause notice for re-classification of FIBC under Chapter 6305 3200 and confirmed the classification. On appeal by the Department against the Orders-in-Original, Commissioner (Appeals) dismissed the appeals of the Revenue and upheld the adjudication orders. Hence, Revenue has preferred these appeals. 4. Heard both sides and perused the records. 5. The learned AR for Revenue reiterated the grounds of appeal (A) to (I). He submits that as per Chapter Note 1 of Chapter 63 provides that the said Chapter applies only to made-up articles of any textile fabrics. This implies that only articles made up of textile fabrics are covered under Chapter 63 whereas F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up of manmade textile and would be classified under drawback tariff item 630502. They also relied on the decision of Hon'ble High Court of Madras reported in 2015 (317) ELT 453 (Mad.) wherein the Hon'ble High Court at para 9 referring to DGFT and CBEC circulars held that FIBC are classifiable under Chapter 63. He also relied on Order-in-Appeal passed by Commissioner (Appeals), Ahmedabad dated 17.6.2014 wherein he classified FIBC under Chapter 6305 and the Department has accepted the classification and has not filed any appeal. He also relied on US International Trade Commission and Harmonized Tariff for the Tariff of 6305 3200 and submitted that US Tariff Commission has also clarified that identical sample of Indonesian origin was classified under USH 6305 3200. He also explained the definition of textiles with reference to website of Textile Industry. He relied on CCE Vs. Champdany Industries Ltd. 2009 (241) ELT 481 (SC) and Porritts & Spencer (Asia) Ltd. Vs. State of Haryana 1983 (13) ELT 1607 (SC). Shri A.K. Jayaraj further submitted that the Department issued five show-cause notices for the subsequent periods against M/s. KCP Karur Packaging, the respondent in these appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Articles thereof 3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures of plastics Sacks and Bags (including cones) 2100 Of polymers of ethylene 29 Of other plastics 2910 Of polyvinyl chloride 2990 Other Section XI Textile and Textile articles Chapter 63: Other made ups Textile Articles 6305 Sacks and bags of a kind used for the packing of goods of manmade textile material 3200 Flexible intermediate bulk container In the British Standard EN ISO 21898-2005, the Flexible Intermediate Bulk Container (FIBC) is defined as intermediate bulk container having the body made of flexible material such as woven fabrics, plastics film or paper, designed to be in contact with the contents, either directly or through an inner liner and collapsible when empty. Further, it is stated that FIBC is designed and intended to be used for a multitude of fillings and discharges. The Central Excise Tariff is based on HSN and it is specifically mentioned in the Chapter 3923 of HSN that; the heading excludes, inter alia, house hold articles .. and flexible intermediate bulk containers of heading 6305. In the sub heading explanatory note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d categorically clarified that classification of the product FIBC under drawback tariff item 6305. It is pertinent to state that both the drawback schedule and ITC Code issued by DGFT and CETH are aligned with HSN, the classification issued by the Board assumes vital importance and Revenue cannot change the classification under Central Excise Tariff Chapter 3923. 12. Further, we find that Point No. 29 of the Minutes of the Meeting of DGFT held on 25.7.2013 clarified item FIBC which is reproduced as under:- The Committee considered the case as per agenda along with other relevant papers and considered the written comments received from Deptt. Of Chemicals & Petrochemicals vide their O.M. No. 46011/37/2012-PC.II dated 18.7.2013, Regional Office of Textile Commissioner, Noida vide their O.M. No. 21(25)/08/CCY/RON/307 dated 29.6.2013 and e-mail dated 15.7.2013 received from DIPP. The Committee observed that the textile material like manmade yarn, flexible tapes, fabrics etc. uses the synthetic polymers as raw material. Therefore, it may be drawn that the textile grade polymers as a raw material are used to manufacture the tape / stripe / yarn etc. Since the process of manufacturing o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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