Tariff classification dispute over filter cloth and grey coarse canvas referred to a Larger Bench amid conflicting Tribunal views.

Conflicting Tribunal views existed on whether products described as filter cloth or grey coarse canvas fell under Chapter Heading 52.05 or 59.09. One prior decision treated filter cloth or grey cotton fabric as classifiable under Chapter Heading 52.05, while another placed grey canvas cloth and allied textile fabrics under Chapter Heading 59.09 as industrial-use fabrics. Because the same assessee's product had been described differently in earlier proceedings, the classification issue could not be finally decided at that stage and was referred for resolution by a Larger Bench.

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Issues: Whether the product described as "filter cloth" or "grey coarse canvas" was classifiable under Chapter Heading 52.05 or Chapter Heading 59.09, and whether the conflict between earlier Tribunal decisions required reference to a Larger Bench.

Analysis: Two earlier Division Bench decisions had taken divergent views on the classification of similar products of the same assessee. One decision held filter cloth or grey cotton fabric to be classifiable under Chapter Heading 52.05, while another held grey canvas cloth and allied textile fabrics to fall under Chapter Heading 59.09 as fabrics for industrial use. As the present product had also been described at different times as filter cloth and grey coarse canvas, the conflict in precedents made it inappropriate to decide the classification issue finally at this stage.

Conclusion: The matter was directed to be placed before the Hon'ble President for constitution of a Larger Bench to decide the classification issue.

Final Conclusion: The controversy on tariff classification was not finally adjudicated by this order and was referred for determination by a Larger Bench.

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