2016 (9) TMI 683

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....ading 5804 and held that they are not entitled to the exemption in terms of Notification No. 8/2003-CE dated 1.3.2003. 3.1 The appellant (M/s Jain Name Label Co.) went in appeal to Commissioner (Appeals). The Commissioner (Appeals) held that some of the goods are in the category of labels, which are classified under Chapter Heading 5807 and some of the goods he held as lace classifiable under Chapter Heading 5804 on which duty is to be charged. The Commissioner (Appeals) in the impugned order also held that value of the trading sale of the appellant has to be deducted from the value of clearances of lace and then demand be reworked accordingly. 4. The appellant is before this Tribunal against the order in appeal passed by Commissioner....

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....pes, lace, bales and thans. The appellant says that they are one and the same thing. However, we find that a label mentions the name and identification of a particular concerned person/individual/firm etc. whereas goods described as lace are ornamental patterns/designs intended to be used by the garment industry for ornamental purposes, though the manufacturing process for all these items may remain same, which the appellant is naming as weaving process. 8.1 The rival tariff headings here are Chapter Heading 5804 and 5807. The description given in these Chapters i.e. 5804 and 5807 are as follows: 5804 TULLES AND OTHER NET FABRICS, NOT INCLUDING WOVEN, KNITTED OR CROCHETED FABRICS; LACE IN THE PIECE, IN STRIPS OR IN MOTIFS, OTHER TH....

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....round is subsequently wholly or partly removed. Such products are classified as embroidery in heading 58.10 as are also true laces which have been subsequently embroidered, and encrusted lace produced by sewn appliqui work. Unlike tullies gauzes or other loosely woven fabrics, lace does not have distinct warp and weft. It is often executed with a single thread and when more than one thread is used it fulfils the same function. Lace may be made by hand or machine." (Emphasis supplied) 9. Explanatory Notes to HSN on Chapter Heading 5804 specifically says that lace does not have distinct weft and warp , whereas the appellant has mentioned that they have been producing these by different settings of warp and weft t....