Classification dispute over grey cotton fabrics/canvas referred for Larger Bench resolution after conflicting tariff rulings.

Grey cotton fabrics/canvas was in dispute as to whether it fell under Heading 52.05 or Heading 59.09 of the Central Excise Tariff. Conflicting Tribunal rulings on the same classification issue had created inconsistency, and the matter had previously been considered for reference to a Larger Bench without a final classification determination. Board circulars cited by the parties were also noted as relevant to the period in question. The issue was directed to be placed before the Hon'ble President for constitution of a Larger Bench to settle the classification controversy.

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Issues: Whether grey cotton fabrics/canvas was classifiable under Heading 52.05 or Heading 59.09 of the Central Excise Tariff, and whether the conflicting Tribunal decisions required resolution by a Larger Bench.

Analysis: The matter involved inconsistent Tribunal rulings on the classification of grey cotton fabrics/canvas. Earlier decisions had taken different views on the applicable tariff heading, and the controversy had already been considered for a Larger Bench on a different occasion but was not then decided on the classification issue. The Board circulars cited by the parties were also noted as relevant to the period of dispute.

Outcome: The issue was directed to be placed before the Hon'ble President for constitution of a Larger Bench for resolution.

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