Plastics classification under Chapter 39 sustained for laminated HDPE fabrics, rejecting the competing tariff heading.

HDPE fabrics laminated with LDPE on both sides were treated as plastics goods for tariff classification, with the Tribunal applying the chapter description and binding precedent that goods made of plastics, rather than synthetic textile material, fall within Chapter 39. The product was accepted under Chapter Heading 3926.90 because it was not shown to fit the competing heading relied on by the Department. The claim to nil duty under Notification No. 53/86 dated 1-3-1986 was not sustained on the classification issue, and the Revenue's contrary view was rejected.

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Issues: Whether HDPE fabrics laminated with LDPE on both sides were classifiable under Chapter Heading 3926.90 or Chapter Heading 3920.38, and whether they were entitled to the claimed nil rate of duty under Notification No. 53/86 dated 1-3-1986.

Analysis: The product was examined in the light of the tariff description and the binding precedent holding that goods made of plastics, and not of synthetic textile material, fall within Chapter 39. The Tribunal noted that Chapter Heading 39.26 covers other articles of plastics and articles of other materials of Heading Nos. 39.01 to 39.14, and that the product was not shown to fall within the competing heading invoked by the Department. Applying the earlier High Court ruling and the tariff description, the Tribunal accepted the assessee's classification.

Conclusion: The product was held classifiable under Chapter Heading 3926.90, and the Revenue's contention for classification under Chapter Heading 3920.38 was rejected. The assessee succeeded.

Final Conclusion: The appeal by the Revenue was rejected and the classification adopted in favour of the assessee was sustained.

Ratio Decidendi: Goods made of plastics, when not covered by a more specific heading, are classifiable under the appropriate plastics entry in Chapter 39 according to the tariff description.

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