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TMI Blog2023 (6) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no test reports relied upon by the Department to claim that it is not of manmade textile material, the classification cannot be concluded under Chapter 39 as Articles for Conveyance or packing of goods made by other plastics . Both the Board Circular and DGFT have clarified that FIBC is classifiable under 6305 based on the HSN Explanatory Notes to Chapter 39. Further it is found in the case of CCE vs. Karur KCP Packaging P. Ltd. [ 2015 (8) TMI 1233 - CESTAT CHENNAI] , the Tribunal by relying on the Hon ble High Court s decision rendered in the case of Karur KCP Packings Ltd. vs. CC [ 2015 (9) TMI 976 - MADRAS HIGH COURT] , Board Circular and DGFT clarification, held that FIBC is rightly classifiable under 6305 32 00 and not under 392 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pearing on behalf of the appellant clearly distinguishes Chapter Heading 3923 and 6305, which reads as follows: Chapter Heading 3923: "Articles for the conveyance or packing of goods, of plastics, stoppers, lids, caps and other closures of plastics" 3923 10 Boxes, cases, crates and similar articles 3923 10 10 Plastic containers for audio or video cassettes tapes, floppy disk and similar articles 3923 10 20 Watch box, jewellery box and similar containers of plastics 3923 10 30 Insulated ware kg. 12% 3923 10 40 Packing for accommodating connectors kg. 12% 3923 10 90 Other Sacks and bags (including cones) 3923 21 00 Of polymers of ethylene 3923 29 Of other plastics 3923 29 10 Of poly (vinyl chloride) 3923 29 90 Other Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lene and other plastic materials would be classifiable under Chapter 39. 3. The learned Authorised Representative on behalf of Revenue reiterated the findings of the learned Commissioner (Appeals) and relying on the Board's Circular stated that the goods are rightly classifiable under Chapter Heading 3923. 4. The limited question to be decided in the present appeal is regarding classification of the FIBC, whether they are classifiable under Chapter 3923 29 90 or under Chapter 6305 32 00. 4.1 On perusal of the relevant Chapter Headings referred supra, Chapter Heading 3923 reads as "Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics" and Chapter Heading 3923 2100 includes "sac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduced as under :- "The Committee considered the case as per agenda along with other relevant papers and considered the written comments received from Dept. 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 of FIBC involves extrusion of polypropy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt's own case, i.e., M/s. Karur KCP Packaging Pvt. Ltd. allowed the writ petition holding that the product is classifiable under 6305 32 00. Para 9 of the Hon'ble High Court's order is reproduced as under :- "Apart from the above, the issue also has been decided by the Director General of Foreign Trade, Udyog Bhawan, classifying that Flexible Intermediate Bulk Containers are covered under ITC (HS) Code 63 and not under ITC (HS) Code 39. The Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi, in Circular No. 42/2011-Cus., dated 22-9-2011, F. No. 609/82/2011-DBK, also has settled the dispute regarding the classification of FIBC by bringing it under Chapter 63, therefore, this Court has no hesitation to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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