2006 (1) TMI 7

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....weaving of HDPE tapes by the conventional warp and weft weaving on looms. The fabrics so woven is then subjected to coating with LDPE on both sides. Thereafter, it is cut according to size. Ropes are placed on all the four sides and sealed, so that the edges may not get torn at the time of use. After sealing, eyelets are affixed at regular distances. 3.The appellant started manufacturing this product in the year 1995. It filed its classification declaration on 1-11-1995 under Rule 173B, classifying the said product under sub-heading 3926.90 and claimed exemption under Notification No. 36/94, dated 1-3-1994 as 'Articles of Plastic' manufactured out of duty paid inputs on which no Modvat credit was availed. This classification declaration wa....

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....how cause notice on 22-7-1999, inter alia, stating that the 'Tarpaulin' was specifically covered under heading 6306.00 and as such no differential duty was recoverable and, therefore, the appellant was not liable to any penalty. 7.The Commissioner of Central Excise passed the Order-in-Original No. 3/Commr./2002, dated 7-2-2002 and confirmed the demand amounting to Rs. 2,12,61,286/-. The objections raised by the appellant were rejected and the Commissioner held that 'Tarpaulin' was classifiable under sub-heading 3926.90. Apart from the amount of duty, Commissioner also imposed penalty in equal amount. 8.Being aggrieved, the appellant filed an appeal before the Tribunal. The Tribunal by its order dated 16/25-2-2004 disposed of the appeal ho....