HDPE tapes classified as plastic strips under Chapter 39, not synthetic textile materials under Heading 54.06.

HDPE tapes made from HDPE granules were treated as classifiable under Chapter 39 as articles of plastics, not as strips or the like of synthetic textile materials under Heading 54.06. The reasoning held that the cited man-made fibre note was not decisive, and that once the goods did not fall within Section XI or Chapter 54, the exclusionary wording did not assist the department. Earlier authority treating HDPE tapes used in sack weaving as plastic strips was followed, and the Chapter 39 exemption for strips was applied.

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Issues: Whether HDPE tapes manufactured from HDPE granules and having an apparent width not exceeding 5 mm were classifiable under Chapter 39 as plastics or under Heading 54.06 as synthetic textile materials, and whether the relevant exemption notification applied.

Analysis: The product was found to be HDPE tapes made from HDPE granules. The reasoning rejected reliance on the cited section note dealing with man-made fibres because that note was not decisive on the classification question. Heading 54.06 covers strips and the like of synthetic textile materials of an apparent width not exceeding 5 mm, but the goods in question were held not to fall within that category. Once the goods were held not classifiable under Section XI or Chapter 54, the exclusionary wording in Chapter 39 did not assist the department. The earlier authorities on HDPE tapes as plastic strips used in sack weaving were followed.

Conclusion: The goods were classifiable under Chapter 39 as articles of plastics and not under Heading 54.06. The exemption notification relating to Chapter 39 strips was applicable, and the department's appeal failed.

Final Conclusion: The classification adopted by the appellate authority was sustained and the demand based on Chapter 54 classification was not accepted.

Ratio Decidendi: HDPE tapes made from HDPE granules, when not answering the description of strips and the like of synthetic textile materials under Heading 54.06, remain classifiable as plastic strips under Chapter 39, and exclusionary notes for textile articles do not operate to bring them within Chapter 54.

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