TaxTMI 
TaxTMI 
2016 (1) TMI 919
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....pondents are manufacturers of HDPE Knitted fabrics falling under Chapter 3926 and availed SSI exemption during the period 2005-2006 under Notification No. 08/2003 dated 01.03.2003. The Commissioner in his Order-in-Original dropped the proceedings initiated in the Show Cause Notice and held that the goods manufactured by the respondents are Knitted fabrics and are different from woven fabric and are eligible for exemption given under S.No.2 of the Table under Notification No. 08/2003. Review Committee approved the Commissioner to file appeal to CESTAT and Revenue filed appeal vide Review Order No. 03/2007 dated 11.04.2007. 3. Appeal No. E/666 - 668/2009 All the three appeals are arising out of common order passed by the Commissioner (A....
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....cation of all the products in detail. He submits that as per Section Note 1(g) of Section XI of CETA 1985 only plastic strip or the like more than 5mm is classifiable under chapter 39 are excluded from textile and textile articles. In their case, the strips are less than 5mm width are covered under Chapter 5404 of CETA 1985. He produced the samples of strips and fabrics and submits that the width of the strips is 1.5 mm. However, he submits that as per Section Note2(p) of Chapter 39 of CETA 1985 clearly excludes the goods of Section 11. Boards Circular dated 24.09.92 was issued against the Notification of HDPE strips which relates to HDPE woven fabrics and not related to knitted fabrics. He relied on HSN Explanatory note under Chapter 54, ....
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....er has rightly allowed the Notification benefit under Clause 8 of the Notification which relates to strips woven fabrics and sacks and knitted fabrics. The adjudicating authority has rightly allowed the SSI exemption under the said notification. He relied 2005 (189) ELT 311 (Tri.-Mum). 6. On the other hand, the Ld. AR reiterated the findings of the impugned order in the case of assessees appeal and the grounds of appeal in the case of departments appeal. She submits that as per the Boards order and the Honble High court of Madhya Pradesh decision in the case of Raj Packwell Ltd. 1990 50 ELT 201 (M.P) goods are rightly classifiable under Chapter 39 as articles of plastics. She drew attention to Section note 1 (h) and note 2 (a) of Sect....
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....ote 2A of Section 11 is not applicable to the present case. All the Committee reports show width is less than 5mm. Both strips, fabrics are rightly classifiable under 54049020 and knitted fabrics under 60059000 and are rightly classifiable under 56079010. 8. Heard both sides and perused the records. The issue involved in the present appeals is regarding classification of DHPE warp knitted fabrics, HDPE ropes, strips, rachal knitted fabrics for agro products and wastes made out of plastic strip less than 5 mm in width. There were different practices for classification of plastic woven bags within the country. The Madhya Pradesh High Court in the case of M/s. Raj Packwell Ltd. held that such bags are classifiable as other articles of plast....