TaxTMI 
TaxTMI 
2018 (6) TMI 866
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....lant, during the period under dispute, was reversing an amount equal to 6% of the value of the exempted Warp Knit Fabric. 3. The Revenue was of the view that the Warp Knit Fabric will be rightly classifiable not under CETH 6005, but under CETH 39269099 as an article of plastic. Accordingly, Show Cause Notices were issued during the period under dispute, proposing to deny the benefit of the exemption and demanding the Central Excise Duty as applicable under CETH 3926. Both the authorities below have upheld the classification under CETH 3926 and confirmed the demand for Central Excise Duties, along with penalties. Aggrieved by the decision represented by one of the. 4. In this connection, we heard Shri Amit Jain, learned Advocate for the Appellant, as well as Shri M.R. Sharma, learned D.R. for the Respondent. 5. The submissions advanced on behalf of the Appellant are summarized below: (i) The learned Advocate drew our attention to the process flowchart enclosed with the appeal document and submitted that in the appellant's factory, various granules such as HDPE, LDPE, LLDPE, etc., are processed along with master batch through the process of extrusion and slittin....
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.... 9. From the perusal of the process of the manufacture, we note that various types of granules such as HPDE, LDPE, LLDPE, etc., are used in the process of extrusion and slitting to produce tapes. It is not in dispute that the width of such tapes is less than 5mm. Such tapes are made use of in the further process in Paschal knitting machine to produce Warp Knit Fabrics. The classification of such Warp Knit Fabric is the dispute before us. 10. In Chapter 60, the heading 6005 specifically covers Warp Knit Fabric made of different materials. It is the submission on behalf of the appellant that the impugned goods are to be classified from the specific heading 6005, but the Revenue has taken the stand that these goods are made out of plastic materials, and hence, they merit classification under CET H 3926. After perusal of the Section Note I(g) and (h) of Section Xl as well as the complementary note in Chapter 39, we are led to the view that the width of the tapes will determine the classification of the goods made out of such tapes. If the width of the tape made out of HDPE, LDPE, LLDPE, etc., is less than 5mm, the fabrics made out of such tapes will merit classification under Chapte....
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....ht of the facts of the present case and the opinion given by certain competent authorities on this product, read with relevant Section/Chapter notes to the Central Excise Tariff Act, 1985 (CETA, 1985) and HSN explanatory notes. 5.1 However, before discussing the technical opinion given by certain agencies, it is relevant whether the CETA, 1985, as existing now after its total alignment with the HSN, convey the meaning of Synthetic Textile Material. For this purpose, a reading of Chapter Note 1 of Chapter 54 of CETA, 1985 is very relevant and is reproduced below :- "Notes: 1. Throughout this Schedule, the term 'manmade fibres' means staple fibres and filaments of organic polymers produced by manufacturing process, either: (a) by polymerization of organic monomers to produce polymers such as polyamides, polyesters, polyolefins or polyurethanes, or by chemical modification of polymers produced by this process [for example, poly(vinyl alcohol) prepared by the hydrolysis of poly (vinyl acetate)];or (b) by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as cuprammonium ray....
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.... Net' which is thus made out of material of CETH 54.04. 53. A specific entry in the CETA, 1985 has to be the proper classification than a general entry in Chapter 39 of the CETH, 1985, as per the Rules of interpretation of the CETH, 1985. The Synthetic & Art Silk Mills Research Association (SASMIRA), Mumbai SASMIRA is linked to the Ministry of Textiles, Govt. of India, SASMIRA and after giving the definitions of Synthetic Textiles, wrap knitted etc. opined in their letter , dated 18-4-2012 & 15-3-2013 that the product manufactured by the appellant is 'Wrap Knitted Fabrics Technical Textile made up of man-made synthetic yarn of width less than 5mm. As per F. No. 1(11)/2011/TTC/Col.XX, dated 7-2-2012 written to the appellant by Assistant Director, Govt. of India, Ministry of Textiles, Office of the Textile Commissioner, Mumbai appellant's unit has been registered as a technical textile unit in the records of the office of Textile Commissioner and has been allotted registration No. 05152007. As per the Technical Textile literature issued by office of Textile Commissioner, Ministry of Textile, Govt. of India "Agrotex" includes technical textile products used in Agr....