9911796707
TMI Blog2021 (10) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the said product is covered under Heading 5903 or otherwise. All the five criteria/condition required for the product of the appellant for being classified under the Heading 5903, have been fulfilled. It is therefore found that based on the test results of the sample product/fabric(obtained by the appellant from ATIRA, Ahmedabad), the said product Fusible interlining fabric of cotton is undoubtedly classifiable under Heading 5903 of the Customs Tariff Act, 1975(51 of 1975) - chapter note of Chapter 52 as well as the explanatory notes to HSN with respect of the headings 5208, 5209 and 5212, we find that it does not cover laminated fabrics or fabrics coated with plastics. Hence, it can be concluded that Fusible Interlining fabrics of cotton will not be covered under Chapter 52 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975). Irrespective of the fact as to whether the fabric of the appellant fulfills the criteria for classification under Heading 5903 or otherwise as per exclusion clauses (1) to (5) of Chapter Note 2(a) of Chapter 59, it would still be classified under Heading 5903 only, on account of the Explanatory notes to the HSN, which states tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufactured is known as Fusible Cotton interlining fabrics and it is supplied to wholesaler, wholesaler to retailer and retailer to tailor for it is used in the collars and cuff of shirt for garments and it s price is below ₹ 100 per sq.metre; that prior to roll out of Goods and Service Tax, the dispute related to classification of the said goods has undergone long litigation; that as of now the said fabrics is classifiable under Chapter 52 of the Central Excise Tariff Act, 1985 as per the decision in the case of Madura Coats Pvt. Ltd. vs. Commissioner of Central Excise, Tirunvelveli reported as 2019 (365) ELT 345 (Tri-Chennai) wherein the Hon ble Tribunal has held that Note 2 (c) in Chapter 59 of Central Excise Tariff itself is no longer in existence and requirements laid down in Chapter Note 2(a) to Heading 5903 read with CBE C Circulars are not satisfied and hence Fusible interlining cloth not to be classified under Heading 59.03. Impugned order cannot sustain and is liable to be set aside. The appellant has further submitted that the aforementioned decision though pertains to the pre-GST regime and pertains to Central Excise Tariff, has got relevance for classificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... astics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39); (4) fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments (usually Chapters 50 to 55, 58 or 60); (5) plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (Chapter 39); or (6) textile products of heading 5811; (b) fabrics made from yarn, strip or the like, impregnated, coated, covered or sheathed with plastics, of heading 5604. Heading 5903 applies to: (a) textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square metre and whatever the nature of the plastic material (compact or cellular), other than: (1) fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from ATIRA, with the 3 conditions of the explanatory notes to HSN in respect of Heading 5903, all the 3 conditions for classification under Heading 5903 were found to have been fulfilled. (ii) The fabric fusible interlining fabric of cotton of the applicant was found to be not classifiable under Heading 5208 to 5212 of Chapter 52 of the Customs Tariff Act, 1975 as none of these headings covered laminated fabrics or fabrics coated with plastics. (iii) Reliance was placed on (a)Order No. 33/WBAAR/2019-20 dated 11.11.2019 issued by the West Bengal Advance Ruling Authority in respect of M/s. Sadguru Seva Paridhan Pvt Ltd. (b) Order No.11/2019-20 dated 12.03.2020 issued by the Uttarakhand State Advance Ruling Authority in respect of M/s.The Ruby Mills ltd. (c) Order dated 19.03.2020 of the Appellate Authority for Advance Ruling, West Bengal in the case of Appeal Case No. 15/WBAAAR/APPEAL/2019 filed by M/s. Sadguru Seva Paridhan pvt.ltd. wherein the Order No. 33 /WBAAR/2019-20 dated 11.11.2019 issued by the West Bengal Advance Ruling Authority was upheld. 8. Aggrieved with the aforesaid ruling, the appellant has filed the present appeal on 14.10.2020. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cs of (1) to (5) will be classified, if not classified under Heading 5903 and that by referring to Explanatory notes to HSN, the GAAR has negated the content of Chapter note 2(a) which is not correct and legal. (iv) The test result obtained by appellant from ATIRA is admitted by GAAR in para 22 of the impugned order and according to the test report dated 02.08.2018, characteristics of the products of the appellant are as under: (1) The product contains 85% and more cotton. (2) The product is polymer coated on one side. Coating cannot be seen with naked eye, is non-continuous and is different from film coating. Film coating is visible with naked eye. (3) The product can be bent without fracturing around a cylinder of a diameter 7m or more at temperature between 15C to 30C. (4) The fabric is not completely embedded in plastic. (5) The product is coated on one side only. (6) The product is covered with plastic polymer on one side and bears a design like a dot matric design resulting from coating process. (7) The fabric is porous and pervious. The product is cotton fusible interlining. (v) The comparison of Chapter note 2(a) Sr.No.1 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing from these treatments (usually Chapters 50 to 55, 58 or 60); (5) plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (Chapter 39); or (6) textile products of heading 5811; This heading covers textile fabrics which have been impregnated, coated, covered or laminated with plastics (e.g., poly(vinyl chloride)). Such products are classified here whatever their weight per m2 and whatever the nature of the plastic component (compact or cellular), provided: (1) That, in the case of impregnated, coated or covered fabrics, the impregnation, coating or covering can be seen with the naked eye otherwise than by a resulting change in colour. Textile fabrics in which the impregnation, coating or covering cannot be seen with the naked eye or can be seen only by reason of a resulting change in colour usually fall in Chapters 50 to 55, 58 or 60. Examples of such ----- (2) That the products are not rigid, i.e. they can, without fracturing, be bent manually around a cylinder of a diameter of 7 mm, at a temperature between 15 degrees centigrad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r covered fabrics, the impregnation, coating or covering can be seen with the naked eye otherwise than by a resulting change in colour. The product is polymer coated on one side. Coating cannot be seen with the naked eye. Coating is non-continuous. This coating is different than film coating. Film coating is visible with naked eye. 02. The products are not rigid, i.e. they can, without fracturing, be bent manually around a cylinder of a diameter of 7 mm, at a temperature between 15 degrees centigrade and 30 degrees centigrade. The product can be bent without fracturing around a cylinder of a diameter 7m or more at temperature between 15C to 30C. 03. The textile fabric is not completely embedded in, nor coated or covered on both sides with, plastics. The fabric is not completely embedded in plastic. It is covered with plastic polymer on one side and bears a design like a dot matrix design resulting from coating process. Condition 1 (Para-23 of Ruling): As per explanatory note referred in column no.2, if the product complies t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not mention polymer coating or film coating, hence this condition is fulfilled is totally erroneous and reading of the explanatory note is out of context. Condition 2: It is mentioned here that is fulfilled as the product can be bent without fracturing around a cylinder of a diameter 7m or more at temperature between 15 degrees C to 30 degrees C. The appellant has stated that GAAR have ignored that the product having these characteristics is excluded at Sr.No.2 of Chapter 2(a). Condition 3: It is mentioned here that is fulfilled as the fabric is not completely embedded in plastic but is covered with plastic polymer on one side and bears a design like a dot matrix design resulting from coating process. The appellant has stated that the condition no.3 available in explanatory note is- (3) That the textile fabric is not completely embedded in, nor coated or covered on both sides with, plastics. Products not meeting the requirements of subparagraph(2) or (3) above usually fall in Chapter 39. However, textile fabric coated or covered on both sides with plastics where the coating or covering cannot be seen with the naked eye, or can be seen only by rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced the full text of the Circular referred above as under: Circular No. 254/88/96-CX dated 18/10/96 [From F.No. 59/3/93-CX.1] Government of India Ministry of Finance Department of Revenue, New Delhi Subject: Classification of Tarpaulin/ Processed waterproofing canvas cloth- Clarification regarding. I am directed to draw your attention to Board s Circular No. 6/91 dated 11.4.91 wherein it was clarified that wax coated canvas cloth would merit classification under heading 59.06 of the Central Excise Tariff if there is formation of visible layer on the surface of the fabric and not merely a change of colour or some residue. If, on the other hand, there is no visible layer formation, then the said wax proofed/ tarpaulin cloth would be classifiable in Chapter 52 of the Central Excise Tariff as water proofed cloth, provided that base fabrics are cotton fabrics. It also clarified therein that a layer should be distinguished from mere presence of residues in uneven patches. 2. It has been represented that the criteria of visible layer formation on the fabric has posed problems in deciding the classification of tarpaulin cloth/ wax coate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sified in Chapter 52 of the First Schedule to the Customs Tariff Act, 1975. (x) Based on the explanatory note of HSN for Chapter 52 and ignoring the Chapter Note 2(a) of Chapter 59, the GAAR has drawn conclusion in para 24.3, 24.4 and 24.5 that the subject fabrics is not classifiable under Chapter 52 but under Chapter Heading 5903 which is not correct; that as discussed in above para, the Chapter note prevails over the Explanatory notes to HSN, accordingly, the decision of GAAR is in contradiction to what is clarified in para 5 by CBEC in the above referred Circular No. 254/88/96-CX dated 18.10.1996; that not only is it also against the General Interpretative Rules which state that for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions. (xi) In the instant case, Chapter Note 2(a) for heading 5903 specifically excludes the fabrics mentioned at Sr.No.1 to 5 of the note where the appellant s fabric falls under Sr.No.2 along with other exclusion clauses; that in exclusion at Sr.No.2, it is speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Madura Coats pvt.ltd. vs. Commissioner of Central Excise, Tirunelveli reported at 2019 (365) ELT 345 (Tri-Chennai) has held that: Cloth-Fusible interlining cloth, Classification of-Note2(c) in Chapter 59 of Central Excise Tariff itself no longer in existence and requirements laid down in Chapter Note 2(a) to Heading 5903 ibid read with CBE C Circulars not satisfied-Impugned goods not to be classified under Heading 59.03 ibid-Impugned order cannot sustain and liable to be set aside. Thus the appellant have relied upon the above decision which is clearly distinguishable from the decisions relied by the GAAR; that the GAAR has not commented or given its findings in their Ruling with regard to the case of M/s. Madura Coats pvt.ltd. vs. CBEC, New Delhi for not considering the appellant s claim. (xiv) Another case which is relied upon by the GAAR is the Ruling of Uttarakhand State Authority for Advance Ruling Order No.11/2019-20 dated 12.03.2020 and the perusal of the order of AAR, Uttarakhand reveals that they have not examined the decision of Madura Coats pvt. ltd. vs. CBEC, New Delhi mentioned above; that the ratio of the two decisions relied upon by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... First Schedule to the Customs Tariff Act, 1975, section and chapter notes and general explanatory notes of the First Schedule; that Rule 1 of the General rules for the interpretation for classification of goods in the schedule provides that The titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter notes. (ii) GAAR has classified their product Fusible Interlining Fabrics of Cotton under Chapter heading No.5903 by mis-reading the Chapter Note.No.2(a) of the said heading. (iii) Chapter note 2(a) of Chapter 59 excludes fabrics having characteristics from Sr.No.1 to 5 of the note from heading 5903 and that by referring to Explanatory notes to HSN, the GAAR has negated the content of Chapter note 2(a). (iv) Comparison of Chapter Note 2(a), Sr.No.1 to 5 with the test result of their product (obtained from ATIRA) clearly suggests that the product is excluded from the chapter heading 5903, but GAAR has extrapolated the issue and has referred to the Explanatory notes of HSN for guidance. (v) The appellant ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce here is that the criteria mentioned in Chapter Note 2(a) [column(1) below] helps to identify those fabrics that are excluded from Heading 5903 whereas the criteria mentioned in the explanatory notes to the HSN [marked in bold letters in column(2) below] lays down the conditions which helps in classifying the product under Heading 5903. A comparative chart of the same, which is given below, will help clarify the issue: Chapter Note 2(a) for Heading No.5903 in First Schedule of the Customs Tariff Act, 1975 Explanatory note of Heading No.5903 from HSN for guidance. (1) (2) Heading 5903 applies to: (a) textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square metre and whatever the nature of the plastic material (compact or cellular), other than: (1) fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of colour; (2) products which cannot, without fracturing, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be seen with the naked eye, or can be seen only by reason of a resulting change in colour, usually falls in Chapter 50 to 55, 58 or 60. Except in the case of textile products of heading 58.11, textile fabrics combined with plates, sheets or strip of cellular plastics, where the textile fabric is present merely for reinforcing purposes, are also classified in Chapter 39 (see General Explanatory Note to Chapter 39, part entitled Plastics and textile combinations , penultimate paragraph). The laminated fabrics of this heading should not be confused with fabrics which are simply assembled in layers by means of a plastic adhesive. These fabrics, which have no plastics showing in cross-section, generally fall in Chapter 50 to 55. In many of the textile fabrics classified here, the plastic material, usually coloured, forms a surface layer which may be smooth or be embossed to simulate e.g. the grain of leather ( leather cloth ). This heading also covers dipped fabrics (other than those of heading 59.02), impregnated to improve their adhesion to rubber, and textile fabrics which are spattered by spraying with visible particles of thermoplastic material and are capable of providi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(a) of Chapter 59 reads as under: Heading 5903 applies to: (a) textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square metre and whatever the nature of the plastic material (compact or cellular), other than: (1) fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of colour; (2) products which cannot, without fracturing, be bent manually around a cylinder of a diameter of 7 mm, at a temperature between 15oC and 30oC (usually Chapter 39); (3) products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39); (4) fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments (usually Chapters 50 to 55, 58 or 60); (5) plates, sheets or strip of cellular plastics, combined wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 as per criteria (1) to (6) of Chapter Note 2(a) of Chapter 59 of the Customs Tariff Act, 1975 (51 of 1975) Corresponding test results as per ATIRA s test report. Whether condition for being classified under Heading 5903 is fulfilled: (1) (2) (3) (4) 1. fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of colour; The product is polymer coated on one side. Coating cannot be seen with the naked eye. Coating is non-continuous. This coating is different than film coating. Film coating is visible with naked eye. Yes 2. products which cannot, without fracturing, be bent manually around a cylinder of a diameter of 7 mm, at a temperature between 15oC and 30oC (usually Chapter 39); The product can be bent without fracturing around a cylinder of a diameter 7m or more at te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a cylinder of a diameter 7m or more at temperature between 15 degrees C to 30 degrees C, hence the product/fabric fulfills this criteria/condition also for being classified under Heading 5903. Criteria 3: As per this criteria, products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour would fall under Chapter 39. As per the test result, the fabric is not completely embedded in plastic but is covered with plastic polymer on one side, hence the product/fabric fulfills this criteria/condition also for being classified under Heading 5903. Criteria 4: As per this criteria, fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments are covered under Chapter 50 to 55, 58 or 60. In other words, fabrics which are not partially coated or not partially covered with plastics and bearing designs resulting from these treatments are not covered under Chapter 50 to 55, 58 or 60, but under heading 5903. As per th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 903. Criteria 5: As per this criteria, plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes would fall under Chapter 39. As per the test results, the fabric is not merely present for reinforcing purposes of plates, sheets or strip of cellular plastics since it contains 85% and more of cotton, hence the product/fabric fulfills this criteria/condition also for being classified under Heading 5903. 12. In view of the above, we find that all the five criteria/condition required for the product of the appellant for being classified under the Heading 5903, have been fulfilled. We therefore, find, that based on the test results of the sample product/fabric(obtained by the appellant from ATIRA, Ahmedabad), the said product Fusible interlining fabric of cotton is undoubtedly classifiable under Heading 5903 of the Customs Tariff Act, 1975(51 of 1975). 13. Although we have decided the classification of fusible interlining fabrics of cotton manufactured by the appellant, we feel the need to refer to the relevant headings of Chapter 52 of the First Schedule of the Customs Tariff Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -- 3-thread or 4- thread twill, including cross twill : 5208 39 -- Other fabrics : 5208 41 -- Plain weave, weighing not more than 100 g/m2: 5208 42 -- Plain weave, weighing more than 100 g/m2: 5208 43 -- 3-thread or 4- thread twill, including cross twill : 5208 49 -- Other fabrics : - Printed : 5208 51 -- Plain weave, weighing not more than 100 g/m2 : 5208 52 -- Plain weave, weighing more than 100 g/m2 : 5208 59 -- Other fabrics : 5209 WOVEN FABRICS OF COTTON, CONTAINING 85%OR MORE BY WEIGHT OF COTTON, WEIGHING MORE THAN 200 G/M2 - Unbleached : 5209 11 -- Plain weave : 5209 12 -- 3-thread or 4-thread twill, including cross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n twill, warp faced, the warp yarns of which are of one and the same colour and the weft yarns of which are unbleached, bleached, dyed, grey or coloured a lighter shade of the colour of the warp yarns. 13.3 Since chapter notes of Heading 5208 and 5209 are not available, reference is being made to explanatory notes to HSN with respect to Headings 5208 and 5209 which read as under: Cotton fabrics are produced in great variety and are used, according to their characteristics, for making clothing, household linen, bedspreads, curtains, other furnishing articles etc. The heading does not include: (a) Bandages, medicated or put up for retail sale (heading 30.05) (b) Fabrics of heading 58.01. (c) Terry toweling and similar terry fabrics (heading 58.02). (d) Gauze (heading 58.03). (e) Woven fabrics for technical uses of heading 59.11. 13.4 Since chapter notes of Heading 5212 are not available, reference is being made to explanatory notes to HSN with respect to Headings 5212 which reads as under: This heading covers woven fabrics (as defined in Part(I)(C) of the General Explanatory Note to Section XI) made of cotton yarns. However, it should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing requirements: (i) It should have a continuous and adherent film or layer of plastic on one side of the fabric surface. (ii) The fabric should be impervious. (iii) It should satisfy the conditions prescribed in Note 2 of Chapter 59. (c) Chapter Note 2(c) was introduced with effect from 01.03.1989 by virtue of which, fusible interlining fabrics became classifiable under Heading 5903 and which read as Textile fabrics, partially or discretely coated with plastic (heading no.59.03] , (d) Chapter Note 2(c) was deleted from Chapter 59 with effect from 16.03.1995. (e) The Board vide Circular No.433/66/98-CX.6 dated 27.11.1998 expressed that the omission of the note was neither intended to nor resulted in changing the classification of fusible interlining cloth under Heading 5903 because as per the HSN Explanatory Notes (1996, 2nd edition, page 894) textile fabrics which are spattered by spraying with visible particles of thermoplastic material and are capable of providing a bond to other fabrics or materials up the application of heat and pressure are covered under Chapter Heading 59.03. Classification of such fabrics under Chapter Heading 59.03 may t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ff stating that the very basis for changing the classification i.e. Note 2(c), which was introduced in Chapter 59, has thereafter been deleted w.e.f. 16.03.1995 and therefore, the position as existed prior to introduction of the said note would be restored. They have also based their decision on the basis of the retest reports of the fabrics of the appellant which clearly indicate that the samples of the impugned fabric have characteristics which would fall within the exclusion (i) to (v) of Chapter Note 2(a) to CETH 59.03 and also the requirement of impervious for the purpose of Board s telex Circular 30.9.88 and Circular No.5/89 will not be satisfied. 16. We, therefore, find, that the Appellate Tribunal of Chennai has decided in favour of M/s. Madura Coats pvt. ltd. on the following main grounds i.e. (i) Chapter Note 2(c) introduced in Chapter 59 w.e.f. 01.03.1989, by virtue of which fusible interlining fabrics came to be classified under Heading 5903 has been omitted w.e.f. 16.03.1995 (ii) Circular No. 433/66/98-CX.6 dated 27.11.1998 which expressed that the omission of the note 2(c) was neither intended to nor resulted in changing the classification of fusible interlining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that the circular is ultra vires. (vii) It therefore, appears that reference to the Single Bench judgment in the above mentioned case does not help in deciding the classification of the applicant s. The fact that CBEC appealed against the Single Bench judgment in 2005 also indicates that it continues defending Circular No. 433/66/98-CX-6 dated 27/11/1998 and has not made any further course correction. Circular No. 433/66/98-CX-6 dated 27/11/1998, therefore, reflects CBEC s view on the classification of fusible interlining cloth as on date. 16.1 In view of the above, we find that CBEC Circular No. 433/66/98-CX-6 dated 27/11/1998 is relevant even today and has got persuasive value as on date. Further, Chapter Note 2(a)(4) to Chapter 59 says that fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments are excluded from Heading 5903 and are usually covered in Chapter 50 to 55, 58 or 60, depending on the materials used. At the same time, according to the Explanatory notes to the HSN of Heading 5903 (detailed in para 11.1 above), textile fabrics which are spattered by spraying with visible particles of thermoplasti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with the views expressed by CBEC in Circular No. 433/66/98-CX-6 dated 27/11/1998 that fusible interlining cloth is classifiable under Heading 5903. We, therefore, find that irrespective of the fact as to whether the fabric of the appellant fulfills the criteria for classification under Heading 5903 or otherwise as per exclusion clauses (1) to (5) of Chapter Note 2(a) of Chapter 59, it would still be classified under Heading 5903 only, on account of the Explanatory notes to the HSN, which states that textile fabrics which are spattered by spraying with visible particles of thermoplastic material and are capable of providing a bond to other fabrics or materials on the application of heat and pressure are classifiable under heading 5903 read with the grounds mentioned in Circular No. 433/66/98-CX-6 dated 27/11/1998. In view of the above, we find that the product fusible interlining fabric of cotton of the appellant would undoubtedly be classifiable under Heading 5903 of the Customs Tariff Act, 1975 only. 17. We also find that the appellant has relied upon the decision of the order of the Authority of Advance Ruling of Uttarakhand in the case of M/s. Goodswear Fashion pvt.ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uling after the issuance of the order dated 19.06.2018 of the Appellate Tribunal of Chennai in the case of Madura Coats pvt.ltd. We also find that the quashing of CBEC s Circular No.433/66/98-CX.6 dated 27.11.1998 by the High Court of Madras is one of the major grounds on which the Appellate Tribunal has decided the case in favour of Madura Coats pvt.ltd. by ruling that the impugned goods would not be classified under CETH 59.03. Further, the view and stand of CBEC in respect of Circular No.433/66/98-CX.6 dated 27.11.1998 has been clearly discussed and clarified in detail in the orders of Authority of Advance Ruling, West Bengal as well as that of the Appellate Authority of Advance Ruling, West Bengal in respect of Sadguru Paridhan pvt.ltd. (referred to in para above). We, therefore, find that the GAAR has rightly relied on the aforementioned judgements as they support our contention and endorse the view that fusible interlining fabrics of cotton are classifiable under Heading 5903 of the First Schedule of the Customs Tariff Act, 1975. 18. Having decided the classification of the product Fusible interlining fabrics of cotton of the appellant, we would also like to rely on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
