Classification of laminated jute bags under excise tariff turns on whether composite articles fall within the jute manufacture entry

Laminated jute bags were treated as a composite article made from hessian fabric and a plastic film or sheet, so they fell outside Item 22A of the Central Excise Tariff, which was intended to cover jute manufactures where jute predominated in the fibres or yarns comprising the product. The amended wording of Item 22A in 1972 and 1977 was read narrowly, and prior Tribunal rulings and the Calcutta High Court view were followed. The article was therefore classifiable under Item 68 for the period after 1-3-1975 until exemption under Notification No. 204/79-C.E. took effect on 6-6-1979, making duty chargeable for that period.

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Issues: Whether laminated jute bags were classifiable under Item 22A of the Central Excise Tariff or Item 68 of the Central Excise Tariff, and whether they were liable to duty for the relevant period before exemption under Notification No. 204/79-C.E. dated 6-6-1979.

Analysis: The amended language of Item 22A, particularly the 1972 and 1977 changes, showed that the entry was intended to cover jute manufactures by reference to predominance of jute in weight among the fibres or yarns comprising the manufacture. The item did not extend to a composite article made out of hessian fabric laminated with a plastic film or sheet, because such a product was no longer a mere jute manufacture. The earlier Tribunal decisions and the Calcutta High Court view were followed, and the applicability of Item 68 for the period after 1-3-1975 was accepted until the exemption notification took effect on 6-6-1979.

Conclusion: Laminated jute bags were not classifiable under Item 22A and were classifiable under Item 68 for the relevant period, so the duty demand was sustainable against the assessee.

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