Cotton tents with accessories remained eligible for concessional excise exemption under the cotton goods notification.

Tents classifiable under Chapter 63 and made of cotton, with no textile material other than cotton, fell within Notification No. 29/04-CE. The presence of poles, rods, pins and similar non-textile accessories did not exclude the goods from the exemption where they were cleared as tents and the accessories formed part of the assessable value. On that basis, the tents qualified for the concessional 4% rate under the notification, and the Revenue's challenge failed.

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Issues: Whether tents cleared with cotton fabric and accessories/non-textile components were entitled to exemption under Notification No. 29/04-CE dated 09.07.2004 and liable only to the concessional rate of duty.

Analysis: The goods were accepted as classifiable under Chapter 63, and there was no dispute that the tents did not contain textile materials other than cotton. The notification extended exemption to goods falling under Chapters 61, 62 and 63 made of cotton not containing any other textile material. The description of the goods in the show cause notices matched that entry, and the presence of poles, rods, pins and similar accessories did not take the tents outside the notified category where the goods were cleared as tents and their value formed part of the assessable value.

Conclusion: The tents were rightly entitled to the concessional rate of 4% under Notification No. 29/04-CE, and the Revenue's appeals failed.

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