2019 (9) TMI 18

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....as given rise to the present appeal is as follows. 2.1 Appellant was dealing in textile fabrics used for industrial applications such as filtration purpose. The manufacturing of goods were made through job worker and appellant was clearing the same by availing exemption benefit available for SSI units under Chapter Heading 59.11 vide Notification No. 08/03-CE dated 01.03.2003. The further case of the appellant is that after crossing the exemption limit, it had applied and obtained Central Excise registration and started paying Central Excise duty during the period under dispute i.e. from October, 2003 to March, 2004. 2.2 Appellant was found to have cleared the goods without payment of excise duty by the Departmental Authorities and acco....

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....ese clearance of products under dispute, it was not entitled to the benefits of SSI exemption available for goods cleared under Chapter 59.11. Learned Counsel for the appellant further submitted that the appellant had produced buyers certificate before the lower Authorities to justify that the goods were meant for industrial/or technical purposes and Board Circular dated 17.04.1997 read with Chapter note 7 of Chapter 59 provide absolute clarity in the matter, which was not considered by the Adjudicating Authority, since the same circular is not applicable in the appellant's case, as it differs in description of the fabrics cleared by the appellant and therefore, classification under Chapter 59.11 was correct. Though not accepting the fi....

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....] and in the case of M/s Anuradha Processors v. Commissioner of Central Excise, Thane reported in 2007 (213) ELT 350 (Tri.-Mumbai) that in a similar dispute of classification, specially in M/s Anuradha Processors case the Tribunal itself had clarified the processed fabrics are classifiable under Chapter 54 and not under Chapter 59 of the Central Excise Tariff Act for which he sought no interference by the Tribunal in the order passed by the Commissioner (Appeals). 5. Heard from both sides at length and perused the case record. It is observed that learned Commissioner (Appeals) had given his findings on classification primarily on the ground that Heading 5911 is a residual entry and covers goods which cannot be classified under any of the ....

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....should be meant primarily for technical use and in few cases, for industrial uses and that is the final stage after which no further processing was suppressed to be done to make the product fit for technical use, since it is last Chapter Heading in that Chapter. However going by the certificate issued by the buyers, it is apparently clear that they were using the product making tailor made filter bags to be used in chemical and pharmaceutical plants. As woven fabrics are subjected to further processing to make it fit for technical uses, we have no hesitation to go with the findings of the learned Commissioner (Appeals) that synthetic woven fabric is classifiable under Chapter 54.06 and not under Chapter 59.11 to make the appellant entitled ....