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TMI Blog2024 (2) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... le under Chapter 6305 3200. The demand of Rs.83,96,616/- along with interest and penalty is set aside - appellant has not disputed the issue of undervaluation and therefore, the demand of Rs.1,80,403/- along with interest and penalty is upheld. Appeal allowed in part. - HON BLE DR. D. M. MISRA , MEMBER ( JUDICIAL ) And HON BLE MRS R. BHAGYA DEVI , MEMBER ( TECHNICAL ) For the Appellant : Shri B. N. Gururaj , Advocate For the Respondent : Shri H. Jayathirtha , AR ORDER Per R. BHAGYA DEVI : The appellant, M/s. Bishen Saroop Ramkishen Agro P Ltd., are manufactures of PP fabric, barrels, plain films and PP FIBC bags. They were issued with show-cause notice dated 26.202010 classifying the products PP FIBC bag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cks and bags of a kind used for packing of goods, and it includes jute and other textile blast fibres. Chapter 6305.32 specifically mentions Flexible Intermediate Bulk Containers of manmade textile materials as shown above. 4.2 Appellant has submitted that monofilament is a thin hair-like long and continuous filament made of various man-made material, especially suited for weaving nets and plastic fabrics. Monofilaments are always of cylindrical cross-section. This fact has not been disputed by the adjudicating authority. 4.3 Board Circular No. 42/2011-cus. dated 22.9.2011 vide para 13 reads as follows: 13. There has been a dispute regarding classification of FIBC (Flexible Intermediate Bulk Containers). It has been represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on shuttle circular loom, therefore, FIBC is a technical textile. The Committee after deliberation decided that items in respect of Flexible Intermediate Bulk Containers are covered under ITC (HS) Code 63 and note under ITC (HS) Code 39. 4.5 DGFT and Board s Circular have clarified that FIBC is classifiable under Chapter Heading 6305; and since there 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 as seen below: The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We also find that US International Trade Commission rulings dated 1-9-2011 for Tariff No. 6305 3200 10 for the classification of FIBC originated from Indonesia wherein the Commission has given ruling that FIBC is classifiable under 6305320010 of US (HTS). 15. Further, the HSN Explanatory Note of Chapter 39 clearly excludes FIBC of Heading 6305 from Chapter 3923. Parallelly HSN Explanatory Note 6305 3200 specifically includes description of FIBC. It is pertinent to state that prior to alignment of Tariff with the HSN Chapter 63 of CETH had only one sub-heading, i.e., 6301 till 1994-95. With effect from 2005 the Central Excise Tariff was aligned with HSN and the Chapter 63 expanded to include more sub-headings from 6301 to 6310. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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