1999 (7) TMI 342 - AT - Central Excise

Tribunal rules on classification & marketability of Nylon Screen Sleeves under Central Excise Tariff

The Tribunal resolved the classification issue in favor of the Revenue, determining that Nylon Screen Sleeves coated with photosensitive material were ... Dutiability - Marketability Issues: Classification and excisability of Nylon Screen SleevesClassification Issue Analysis:The case involves three appeals concerning the classification and excisability of Nylon Screen Sleeves. The Collector of Central Excise initially classified the sleeves under Chapter 37 of the Central Excise Tariff, but later remanded the matter for reevaluation. The appellants argued that the sleeves, used in manufacturing Rotary Screen Cylinders, should be classified under Chapter Heading 84 and are exempt under a specific notification. They contended that the sleeves, post-exposure and developing, transformed into photographic textile articles, not falling under Chapter 37. The Revenue, however, asserted that the sleeves, after undergoing various processes, became distinct articles classified under Chapter 37. The JDR emphasized that the process undertaken by the appellants amounted to manufacture, as per Chapter Heading 3704 covering sensitized textiles. The Tribunal concluded that the sleeves, coated with photosensitive material, were classifiable under Chapter 37. The issue of classification was thus resolved in favor of the Revenue.Marketability Issue Analysis:Regarding marketability, the Collector of Central Excise deemed the goods marketable based on the Tariff Schedule, a decision challenged by the appellants. Citing the Supreme Court's ruling in a similar case, the Tribunal disagreed with the Commissioner's finding on marketability. Not finding evidence of marketability, the Tribunal remanded the issue for fresh consideration, emphasizing the necessity of evidence to determine marketability. The Tribunal highlighted the importance of verifying the process involved before classifying the item, suggesting a remand for further assessment in light of the law and observations made. The judgment underscored the significance of establishing marketability through evidence and proper evaluation.Conclusion:The Tribunal's decision addressed the issues of classification and marketability of Nylon Screen Sleeves comprehensively. It clarified the classification under Chapter 37 based on the processes involved and remanded the marketability issue for reconsideration with the requirement of substantial evidence. The judgment highlighted the importance of evidence, proper evaluation, and adherence to legal provisions in determining the classification and marketability of goods under the Central Excise Tariff.