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TMI Blog2017 (4) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... lants are engaged in the manufacture of strips, HDPE knitted fabrics, HDPE knitted bags and HDPE waste under respective sub heading Nos.392010.92, 393690.90, 392329.90 & 391510.00 of CETA'1985 till March 2006 and they had paid excise duty @ 16% advalorem on home clearances. During April 2006, they had reclassified the said goods under Chapter 54 as well as 63 and did not classify HDPE waste. Department was of the view that the products are classifiable under Chapter 39 and therefore a SCN dt. 28.9.2006 was issued raising the demand of Rs. 3,53,916/- along with interest and also proposing to impose penalties. After due process of law, original authority held that the goods are classifiable under Chapter 39 and confirmed duty along with i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of not less than 5 mm. Therefore the case law relied by ld. counsel in the case of Flora Agrotech Vs CCE Vapi (supra) is squarely applicable to the facts of the case. For better appreciation the relevant portion of the judgement is reproduced as under : "5.1 However, before discussing the technical opinion given by certain agencies it is relevant whether the CETA, 1985, as existing now after its total alignment with the HSN, convey the meaning of Synthetic Textile Material. For this purpose, a reading of Chapter Note 1 of Chapter 54 of CETA, 1985 is very relevant and is reproduced below :- "Notes : 1. Throughout this Schedule, the term 'man-made fibres' means staple fibres and filaments of organic polymers produced by manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts. All polymerized products made by polymerization of organic monomers are called synthetic plastic materials of Chapter 39. Chapter Note 1A added to Chapter 54 of CETA, 1985 was introduced w.e.f. 29-6-2010 and was made retrospective in operation. As per this chapter note filament yarn made from plastic or plastic waste have been considered to be textile materials. This amendment was not available in the statute books when judgment was delivered by M.P. High Court in the case of Raj Packwell Ltd. v. UOI (supra) which was followed by Rajasthan High Court and CESTAT Benches. It is an undisputed fact that the plastic strips used in making the Knitted Fabrics Shed Net is less than 5 mm width. As per Section Note 1(p) of Chapter 39 strip of pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtiles, Office of the Textile Commissioner, Mumbai appellant's unit has been registered as a technical textile unit in the records of the office of Textile Commissioner and has been allotted registration No.05152007. As per the Technical Textile literature issued by office of Textile Commissioner, Ministry of Textile, Govt. of India Agrotex includes technical textile products used in Agriculture, horticulture (incl. floriculture), fisheries and forestry. Example of Agrotex technical textile include Shed nets, mulch mats, crop covers, anti-hail nets, brid protection nets, fisheries nets, etc. Further office of Joint DGFT Surat while issuing Authorisation No.5230009764, dated 15-11-2011 has held their product Warp Knitted Fabrics to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erials of apparent width not exceeding width 5 mm as under :- "Strips and the like, of synthetic textile materials. The strips of this heading are flat, of a width not exceeding 5 mm, either produced as such by extrusion or cut from wider strips or from sheets". Chapter Note 1A to Chapter 54 was inserted with effect from 29-6-2010 with retrospective effect. The products under question in the present appeals are not plastic woven bags. These are knitted fabrics used as agro net. Hence distinct from the plastic bags considered in the earlier cases. By taking into account the changes in the scope of the tariff heading and the item under consideration recently the Ahmedabad Bench of the Hon'ble Tribunal in the case of Flora Agrotech v. CCE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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