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TMI Blog2024 (9) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... tainers of heading 42.02 and flexible intermediate bulk containers of heading 63.05. Hon ble High Court of Gujarat in latest judgment in the case of M/s CTM Technical Ltd. [ 2020 (12) TMI 1100 - GUJARAT HIGH COURT ] has gone into the issue in a detailed manner and has come to the conclusion that if the sacks/ bags are woven from plastic strips, they will be classifiable under Heading 6305. The impugned bags and sacks having been manufactured by weaving material derived from HDPE/ PP strips merits classification under Heading 6305 - even otherwise, without prejudice to the above classification, the appellants request for giving benefit of CENVAT credit, export and cum- duty is also acceptable - When the duty itself is held to be not chargeable, the question of interest and penalties does not arise and the same have to set aside. Appeal allowed. - HON BLE Mr. S. S. GARG, MEMBER (JUDICIAL) And HON BLE Mr. P. ANJANI KUMAR, MEMBER (TECHNICAL) Shri Naveen Bindal and Shri Bharat Jain, Advocates for the Appellant Shri Pawan Kumar, Authorised Representative for the Respondent ORDER PER : P. ANJANI KUMAR The appellants, M/s Sunil Trading Co.(Appeal No. E/60810/2019), are engaged in the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsels of the appellants, submits that the appellant s contention on the classification of HDP/ PP Bags was not discussed in the impugned order; Heading 6305 is meant for Sacks and Bags of a kind used for the packing of goods and the subtitle of the Chapter is of man-made textiles materials ; Chapter Heading 6305 3300 is meant for other, of Polyethylene or Polypropylene Strip or the like though what constitutes man-made textile material is not defined in the Central Excise Tariff, Hon ble High Court of Punjab Haryana in the case of M/s AR Plastics Pvt. Ltd. - VATAP No.134 of 2013 dated 14.05.2014 relying on the Hon ble Supreme Court s decision in the case of Porrits and Spencer (Asia) Ltd. (1979) 1 SCC 82 and in the case of Indo International Industries- (1981) 2 SCC 528 held that HDPE fabric is a textile and is exempt from VAT in the State of Haryana; it is clear from the above judgment that HDPE/ PP Fabric is fully covered under the definition of Textile Material and as such would fall under CETH 6305 3300 and CETH 6305 9000; it is important to note that Shri Nitin Garg, one of their suppliers, stated that the manufacture of HDPE Fabrics involves weaving; Department s reliance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport of his arguments on each of the issues: R. Plastics Pvt. Ltd. Vs. State of Haryana-VATAP No. 134/2013 DOO: 14.05.2014. CTM Technical Textiles Ltd. Vs. UOI- 2020(12) TMI 1100-Gujarat High Court Poritt's Spencer (Asia) Ltd. Vs. State of Haryana - 1997 (1) SCC 82 CC, Jamnagar Vs. Shankar Packaging Ltd.-2023 (386) ELT 462 (Tri. Ahmd) Commissioner of Sales Tax, UP Vs. Kanpur Plastic Pack (P) Ltd.-1984 SCC Online ALL 978 State of Tamil Nadu Vs. Polyweb Private Limited-1980 SCC Online Mad 364 Mahalaxmi Polyplast Pvt. Ltd. Vs. State of UP-1990 SCC Online All 968 Delhi Cloth and General Mills Co. Ltd. Vs. State of Rajasthan and others-MANU/SC/0399/1980 Commissioner of Central Excise Vs. Karur KCP Packagings Pvt. Ltd.-2016 (331) ELT 604 (Tri. Chennai) TPI India Ltd. Vs. CCE, Mumbai-II-2005 (5) TMI 159 CESTAT, MUMBAI Raj Pack Well Ltd. Vs. UOI-1990 (50) ELT 201 (MP) Assessment Orders by Punjab VAT for the year 2013- 14, 2014-15, 2015-16 2016-17 Eves Fashions Vs. CCE, Delhi-1-2006 (205) ELT 619 (Tri. Delhi) Tropical Clothing Co. Pvt. Ltd. Vs. UOI- 2019 (369) ELT 231 (Guj) Ramani Plastics Pvt. Ltd. Vs. CCE, Chennai-1- 2015 (317) ELT 343 Universal Packaging Vs CCE, Mumbai-V-2011 (264) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xible intermediate bulk containers 6305 33 00 -- Other, of polyethylene or polypropylene strip or the like 6305 39 00 -- Other 6305 90 00 -- Of other textile materials 7. We find that as submitted by the learned Counsel for the appellants, Chapter Note 1A to Chapter 54 gives scope for the raw materials to be classified under plastics under Chapter 39 whereas the final products made out of them can fall under Chapter Heading 54/ 55. In the instant case, the sacks are made out of HDPE/ PP strips. We find that learned Commissioner appears to have classified the goods under Chapter 39 because of the fact that they are made of strips of plastic falling under Chapter 39; learned Commissioner relies on the case of Raj Pack Well Ltd. 1990 (50) ELT 201 (MP) and other cases cited therein. Learned Commissioner finds as below: In this regard, it is observed that the basic constituent of HDPE / PP bags is HDPE/PP granules. HDPE or High- density polyethylene (HDPE) is a thermoplastic polymer produced from the monomer ethylene. Similarly, polypropylene is also thermoplastic polymer produced from the chain-growth polymerization of propylene, and is the most widely produced commodity plastic along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Polyester fabrics, terelene fabrics, nylon fabrics, etc. are well known varieties of fabrics, and the raw material for all such fabrics is plastic. 54. The term textile is derived from the Latin texere which means to weave , and it means any woven boric The Apex Court has observed as under at para 6 of judgment in Porritts Spencer (Asia) Ltd. (supra): There can, therefore, be no doubt that the word 'textiles in Item 30 of Schedule 'B' must be interpreted according to its popular sense, meaning that sense which people conversant with the subject-matter with which the statute is dealing would attribute to it. There we are in complete agreement with the Judges who held in favour of the Revenue and against the assessee. But the question is: What result does the application of this test yield? Are 'dryer felts' not 'textiles' within the ordinary accepted meaning of that word? The word textiles' is derived from the Latin 'texere' which means to weave' and it means any woven fabric. When yarn, whether cotton, silk, woollen, rayon, nylon o of any other description or made out of any other material is woven into a fabric, what comes into being i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into consideration while issuing such Order and Trade Notice. The Board's Circular and the Collector's Trade Notice prima facie appear to be contrary to the law laid down by the Apex Court about what is 'textiles', and cannot be relied upon for classifying woven fabric. 57. Both the goods in question are being manufactured by the writ-applicants by weaving; it being warp knitting in case of the Agro Shade Net and weaving by warp and weft in case of the Geo Grid fabrics. Both these commodities are in the nature of fabrics, and the respondents have also accepted the fact that the Agro Shade Net are fabrics manufactured on the Raschel knitting machine, whereas the Geo Grid fabrics are woven fabrics manufactured on the weaving machines. 58. The judgment in Raj Pack Well Ltd. (supra) relied upon on behalf of the respondents has nothing to do with the HDPE fabric, but it relates to the HDPE strips/tapes/sacks. The question whether fabric woven out of strips or tapes are textile products or not, was not involved in this judgment. The contention raised by the writ-applicants is that the woven fabric would be 'textile' irrespective of the method of weaving through an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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