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TMI Blog2019 (5) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... The Central Excise Service Tax Appellate Tribunal, (CESTAT) West Zonal, while deciding the appeal has classified Warp Knit Fabrics under Heading 60059000, Chapter 60 of the Central Excise Tariff. In the present case, there is no dispute that Schedule I, Entry 48 refers to a classification provided under the I Schedule to the Additional Duties of Excise (Goods of Special Importance Act) 1957 and, therefore, the classification done under the Central Excise Tariff has to be accepted especially when MP VAT Act, 2002 Schedule refers to the Tariff Heading / classification under the Central Excise Act. The findings arrived at by the Assessing Officer in holding that the goods are not included in Entry 48 of Schedule I of the MP VAT Act, 2002 is therefore, bad in law - By no stretch of imagination, the goods can be treated to be included under Entry 34 List 2 of the MP VAT Act, 2002 hence, the question of payment of duty @ 5% does not arise. In the present case, the classification issue has been decided u/S. 70 of the MP VAT Act, 2002 by the Commissioner and appeal to the Addl. Commissioner is certainly going to be an empty formality. This Court is of the considered opinion that the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en held that Warp Knit Fabrics are classified under Heading 60059000 Chapter 60 of the Central Excise Tariff Act, 1985. The contention of the petitioner is that respondent No.3 has erroneously treated Warp Knit Fabrics under Entry No. 34 of Schedule II and has erroneously levied tax @ 5%, whereas, the entry should have been treated under Entry 48 List 1, Schedule I. A prayer has been made for quashment of the impugned order. 03. On the other hand, reply has been filed in the matter by the respondent State and it has been stated that the Commissioner of Commercial Tax in exercise of powers conferred u/S. 70 of the MP VAT Act, 2002, in the case of M/s. SR Polyimpex Pvt. Ltd., and in the case of M/s. Neo Corp International Ltd., has rightly imposed tax @5% by treating it as Entry No.34 of Schedule II. The respondents have stated that the goods in question ie., Warp Knit Fabrics/ agro shed net is not covered by Entry No. 48 of Schedule I of the MP VAT Act, because the said goods, even though it can said to be a textile is not included in the I Schedule of the Act of 1957, hence the same is taxable under Entry 34 of Part 2, Schedule II of the MP VAT Act, which relates to other fabrics ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IX-1 THE ADDITIONAL DUTIES OF EXCISE (GOODS OF SPECIAL IMPORTANCE) ACT, 1957 (58 OF 1957) THE TENTH SCHEDULE of the Finance Bill, 2005 (see section 116) 'FIRST SCHEDULE' [See section 3 (1)] NOTES 1. In this Schedule, "tariff item", "Heading", "Sub-heading" and "Chapter" mean respectively a tariff item, heading, sub-heading and Chapter in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986). 2. The rules for the interpretation of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), the Section and Chapter Notes and the General Explannatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this Schedule. Tariff Item Description of goods Unit Rate of Additional Duty 1 2 3 4 1701 - CANE OR BEET SUGAR AND CHEMICALLY PURE SUCROSE, IN SOLID FORM Raw sugar not containing edded flavouring or colouring matter : 1701 11 - Cane sugar 1701 11 10 - Cane jaggery Kg. ₹ 37 Per Quintal 1701 11 90 - Other Kg. ₹ 37 Per Quintal 1701 12 00 - Beet Sugar Other: Kg. ₹ 37 Per Quintal 1701 91 00 - Refined sugar containing added f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PILE FABRICS, INCLUDING "LONG PILE" FABRICS AND TERRY FABRICS, KNITTED OR CROCHETED 6001 10 - "Long pile" fabrics: 6001 10 10 - Of cotton Kg. 8.00% 6001 10 20 - Of man-made fibres Kg. 8.00% - Loooped pile fabrics: 6001 21 00 - Of cotton Kg. 8.00% 6001 22 00 - Of man-made fibres Kg. 8.00% - Other: 6001 91 00 - Of cotton Kg. 8.00% 6001 92 00 - Of man-made fibres Kg. 8.00% 6002 KNITTED OR CROCHETED FABRICS OF A WIDTH NOT EXCEEDING 30 CM, CONTAINING BY WEIGHT 5% OR MORE OF ELASTOMERIC YARN OR RUBBER THREAD, OTHER THAN THOSE OF HEADING 6001 6002 40 00 - Containing by weight 5% or more of Kg. 8.00% Elastomeric yarn but not containing rubber thread 6002 90 00 - Other Kg. 8.00% 6003 KNITTED OR CROCHETED FABRICS OF A WIDTH NOT EXCEEDING 30 CM, OTHER THAN THOSE OF HEADING 6001 OR 6002 6003 10 00 - Of wool or fine animal hair Kg. 8.00% 6003 20 00 - Of cotton Kg. 8.00% 6003 30 00 - Of synthetic fibres Kg. 8.00% 6003 40 00 - Of artificial fibres Kg. 8.00% 6003 90 00 - Other Kg. 8.00% 6004 KNIMED OR CROCDHETED FABRICS OF A WIDTH EXCEEDING 30 CM, CONTAINING BY WEIGHT 5% OR MORE OF ELASTOMERIC Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Excise (Goods of Special Importance Act, 1957) hence the rate of duty is 12%. 09. Thus, this Court is of the considered opinion that respondent No.3 has failed to consider that the Warp Knit Fabrics fall under Heading 60059000 of the Central Excise Tariff Act, as held by the Commissioner Appeals, Central Excise, Indore. By passing the impugned order, respondent No.1 has brushed aside the vital fact that the product in question is included in the list of I Schedule of the goods of Special Importance under the Additional Duty of Excise (Goods of Special Importance Act) 1957 and, therefore, again the impugned order deserves to be quashed. 10. In the present case, there is no dispute that Schedule I, Entry 48 refers to a classification provided under the I Schedule to the Additional Duties of Excise (Goods of Special Importance Act) 1957 and, therefore, the classification done under the Central Excise Tariff has to be accepted especially when MP VAT Act, 2002 Schedule refers to the Tariff Heading / classification under the Central Excise Act. The findings arrived at by the Assessing Officer in holding that the goods are not included in Entry 48 of Schedule I of the MP VAT Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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