9911796707
TMI Blog2005 (2) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... al, Arijit Pasayat and C.K. Thakker, JJ. [Order]. - The appellant weaves grey tyre cord fabrics in running length after obtaining nylon yarn from tyre companies. It cleared the goods manufactured by them as tyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon under Tariff Heading 59.02 of the Schedule to the Central Excise Tariff Act, 1985. At that point of time the goods classifiable under Tariff Heading 59.02 were exempted from payment of basic duty by virtue of Notification 63/87, dated 1st March 1987 as amended. The assessee, however, was still liable to pay additional duty which was duly paid. 2.On the allegation that the goods were classifiable under Tariff Heading 59.09 a show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brics. Hence, it cannot be classified under Chapter 59. (viii) The test result applied to the lot from which the Samples was drawn. (ix) Extended period not applicable. 3.The Commissioner rejected the submissions of the assessees and confirmed the demand as raised in the show cause notice and imposed penalty of the equivalent amount. The appellant preferred an appeal before the Central Excise Gold (Control) Appellate Tribunal (CEGAT). The CEGAT remanded the matter to the Commissioner being of the view that the appellant had not been provided with sufficient opportunity to produce documents before the adjudicating authority in support of its submission that it was using high tenacity yarn in the manufacture of its fabrics. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue Department had itself made it abundantly clear that tyre cord fabric which was unprocessed would not be classified under Tariff Heading 59.09. It was also made clear that tyre cord fabrics would, before processing be appropriately covered by Tariff Heading 52.04. Applying the same reasoning, it is contended that the appellant's fabrics being also unprocessed and should be classified under Tariff Heading 54.08 since the yarn with which the fabric was woven was not cotton but nylon. It is submitted that Tariff Heading 59.09 does not in any event cover unprocessed fabric. It is pointed out that the appropriate heading should have been 54.08 which at the relevant time prescribed a nil rate of duty. Finally, it is submitted that the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then it might be that Section Note (1) may not be relevant in interpreting Tariff Heading 5909. However, in that event it cannot be disputed that textile products referred to in 59.09 are different from textile fabrics because they would by definition be the product of textile fabrics and not the fabrics themselves. Furthermore, if one reads Section Notes 5 and 6 of Section XI as they then stood along with Tariff Heading 59.09 it is clear that Tariff Heading 59.09 applies to 'made up fabrics' and not 'fabrics' which have been processed in some fashion. Therefore, the unprocessed fabric, as the appellant's goods admittedly are, would not be classifiable under Tariff Heading 59.09. 10.Additionally, the appellant had claimed the classificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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