9911796707
TMI Blog2001 (2) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... to valuation of the impugned product and availability of Modvat credit in case the product is held to be dutiable. 2. Shri Arvind P. Datar, learned Sr. Counsel, submitted that the appellants have a composite unit for manufacturing Zip fasteners; that they are also manufacturing zipper tapes, slide fasteners etc. which are required for manufacture of zip fasteners; that the dispute relates to classification of zipper tapes during the period from 1-3-1994 to 15-3-1995 during which period, the tariff rate under Heading 96.07 was nil. He submitted that as per Note 6 of Chapter 58 of CETA, for the purpose Heading No. 58.06 the expression narrow woven fabrics means woven fabrics of width not exceeding 30 mm whether woven as such or cut from wid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to by the Department. He mentioned that if the product is classifiable under Heading 96.07 it will be chargeable to nil rate of duty during the relevant period and the valuation dispute will not be material, but he would like to mention that the Commissioner has taken the price of the highest quality goods for assessing all the impugned goods manufactured by them. Concluding the argument he claimed that if the product is held to be leviable to duty, they will be eligible for Modvat credit of the duty paid on the inputs as well as on the capital goods. 3. Countering the arguments, Shri S. Kannan, learned DR, submitted that the Commissioner has given clear findings in the impugned order about the selvedges on both the edges. He drew our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n both the edges. Once the product in question does not satisfy the requirement of having selvedges on both the edges, it cannot be classified under Heading 58.06 of the Tariff. This is also supported by the decision in the case of Simplex Mills (supra). The explanatory notes to HSN under Heading 86.07 at page 1732 clearly provides that the heading covers parts of slide fasteners, e.g. chain scoops, sliders or runners, end pieces and narrow strips of any length mounted with chain scoops. Therefore, the narrow strips which is used for making slide fasteners will be classifiable as parts under Heading 96.07. We, therefore, hold that the impugned product is classifiable under Heading 96.07 of the Tariff. As the Tariff rate itself was nil durin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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