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TMI Blog2005 (5) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... istent with the law/judgment. Hence, the circular dated 18-8-1989 was binding on the Revenue should have been applied. In any case, the bags in question would be classifiable under Heading 63.01 as other made-up textile articles, attracting then the same rate of duty as discharged, as applying Section Note 5 which defines 'made-up'. Since there is statutory definition of 'made-up', resort cannot be made to general understanding of 'made-up'. Note 5(e) defines 'made-up' means, assembled by sewing, gumming or otherwise. When the bags in question are assembled by cutting, gumming and stitching, then the bags in question satisfy the definition of 'made-up' given in Section Note 5(e) to Section XI of the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raft Lined bags, with or without liner. While Appear No. E/424/98-Mum, relates to the confirmation of the consequential demands for the period from April 1994 to Feb. 1995. 1.2 The break-up of demand, item-wise as given by the appellant is as under :- (a) HDPE Laminated Fabrics Rs. 14,931/- (b) Bags without liner Rs. 35,29,526/- (c) Bags with liner Rs. 73,60,546/- Total Rs. 1,09,05,003/- The appellants had classified the above goods under heading 59.09 and have paid duty at the rate of 15% ad val. as applicable at that time. Department has classified the above bags under sub-heading 3923.20 and the Laminated fabrics under Heading 39.20 attracting duty at the rate of 30% ad val., accordingly demands of differential duty of 15% ad val. have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in both the appeals. This Section 37B order of the CBEC, relying on the decision of the MP High Court in the case of Raj Packwell's case - 1990 (50) E.L.T. 201 (MP) stipulates that HDPE strips, tapes and the fabrics/sacks made therefrom are classifiable under Chapter 39. (c) The appellant contend that Section 37B order is not binding on the appellants question the same before us reliance on the following decisions: (i) Usha Martin Industries - 1997 (94) E.L.T. 460 (S.C.) - para 21 (ii) Paper Products Ltd. - 1999 (112) E.L.T. 765 - para 4 (iii) Birla Jute Industries - 1992 (57) E.L.T. 674 (Cal.) - para 18(2) (iv) Bajaj Auto Ltd. v. CCE 1996 (88) E.L.T. 355 (LB) - para 8 also submits that, Section 37B order is applicable for the classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the said order dated 24-9-1992 of the Board does not deal with the classification of HDPE fabrics laminated with plastics or paper. Hence, the reliance on the order dated 24-9-1992 in the present case is not sustainable. (f) In the present case, the goods are classifiable under Chapter 59 in view of the Circular dated 18-8-1989 of the Board wherein Board has dealt with the very same goods viz HDPE fabrics laminated with LDPE and kraft paper. It is well settled that circulars issued by the Board are binding on the departmental officers, even if it is inconsistent with the law/judgment Reliance is placed on the following decisions :- (a) Paper Products Ltd. - 1999 (112) E.L.T. 765 - para 4 (b) Dhiren Chemicals - 2002 (139) E.L.T. 3 - pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of goods as it is found that relevant portion of heading 63.05 of HSN reads as under : 63.05 - Sacks and Bags, of a kind used for the packing of goods 6305.10 - Of jute or of other textile bast fibres of heading No. 53.03 6305.20 - Of cotton - Of man-made textile materials 6305.32 - Flexible intermediate bulk containers 6305.33 - Other, of polyethylene or polypropylene strip or the like This heading covers textile sacks and bags of a kind normally used for the packing of goods for transport, storage or sale. These articles, which vary in size and shapes, include in particular flexible intermediate bulk containers, coal, grain, flour, potato, coffee or similar sacks, mail bags, and small bags of the kind used for sending samples of merch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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