2000 (3) TMI 577

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arn. 2. The facts of the case in brief are that the appellants manufacture knitted fabrics of yarn and other knitted fabrics containing elestomeric yarn. The assessee claimed that the yarn was classifiable under sub-heading 6002.92 whereas the department had held that the yarn was classifiable under sub-heading 6002.30 3. Shri M. Chandrashekharan, ld Sr. Advocate along with Shri R. Krishnan, ld. Advocate appeared for the appellants who submitted that the test report relied upon in the SCN shows that the fabrics in dispute contain 90.7% of cotton and 9.3% of elestomeric yarn. He submitted that thus cotton predominated in the composition of the knitted fabrics. He, therefore submitted that the principle for classification of this ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion of this product. He referred to the Interpretative Rule 5 of the rules for interpretation of Central Excise Tariff and submitted that this rule provides "For legal purposes, the classification of goods in the sub-heading of a heading shall be determined according to the terms of those sub-headings and any related sub-heading notes and, mutatis mutandis, to the above rules, on the understanding that the only sub-headings at the same level are comparable. For the purposes of this rule, relative chapter and section notes also apply unless the context otherwise requires". Ld. Sr. Advocate submitted that if this interpretative rule is applied in the above context then the product of Chapters 56 to 63 shall be classifiable in terms of the cha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ould be preferred over the specific notes. We note that similar issue came up before the Larger Bench of this Tribunal in the case of Saurashtra Chemicals, 1986 (23) E.L.T. 283. This Tribunal observed that section notes and chapter notes in the Customs Tariff are part of the general statutory tariff and are relevant for classification of goods under the Customs Tariff. Relevant headings in the tariff are to be interpreted and applied in the light of the section notes and chapter notes which are statutory and binding like the headings themselves. These section notes and chapter notes sometimes extend and sometime restrict the scope of certain headings. In another words, the scheme of the Customs Tariff Act is to determine the coverage of res....