TaxTMI 
TaxTMI 
2021 (9) TMI 1063
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....ne - Screen Printing, Conveyor Belt, 3 chambers has burner Blower, Heater Blower, Cooling Drum and Platter. 3. Functions of various parts of the micro dot coating machine: a. Screen Printing - A roller like structure along with pump installed on the sides. There is a dotted design on the roller which prints the scattered microdots on the fabric. The function of pump is to throw in the adhesive powder and the roller does the printing. b. Conveyor Belt - The fabric travels through whole machine with the help of this belt. c. The machine has 4 chambers out of which, 3 chambers has burner and Blower and 4th Chamber has Heater and Blower. The conveyer Belt takes the cloth through all the chambers of the machine. The Burner and Blower helps in drying and fixing the print on the fabric. d. Cooling Drum - This is the last part where the cloth is put under very low temperature. e. Platter - The final fabric is collected in platter. 4. Process The steps involved are as follows- Unwind---> Screen Coater -----> Scatter---> Suction---> Dryer----> Cooling----> Platter -----> Finished Goods The applicant describes the process as follows- a. The applicant purchases Fabric from....
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....ed or crocheted fabrics of headings 6002 to 6006. (c) The applicant submits as follows: (i) The impregnated and coating on the finished goods can be seen with naked eyes. (ii) The manufactured cloth can be bent manually. (iii) The manufactured product is embedded with plastic. However, it is not entirely coated or covered on both sides or completely embedded. The dotted coating has not made the textile fabrics impervious. (iv) The applicant states that the coating on the fabric is plastic in nature and bears dotted after the entire process. (v) The fabric is not the mere material for enforcing purpose instead it is the main raw material. (vi) The product does not fall under heading 5811. In view of the above evaluation impugned product satisfies the specifications mentioned in point 4 of the Chapter Note 2 which reads that CTH 5903 applies to Textile fabrics other than fabric partially coated or partially covered with plastics and bearing designs resulting from these treatments (usually chapters 50 to 55, 58 or 60). Therefore, the applicant is of the belief that the product i.e. interlining cloth of woven knitted polyester fabric will not be classified under heading....
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....ase of Single Bench of Madras HC in case of Madura Coats Ltd. Vs CBEC wherein the Hon'ble High Court has quashed the Board Circular No. 433/66/98-CX dated 27-11-1998. Further the applicant submits that CESTAT was approached vide Appeal No. E/31/2012 in case of Madura Coats Private Limited V Commissioner of Central Excise, Tirunelveli. The matter before the Hon'ble Tribunal was that applicant was engaged in manufacture of coated fusible interlining fabrics of cotton and the department was of the view that the said product will be classified under chapter heading 5903 even in absence of chapter note 2(c). The Hon'ble CESTAT had passed an order stating that the remnant samples of the product should be checked and the officers should pass a fresh order of classification. The characteristics that these samples need to have to merit classification under chapter note 5903 is that the fabric should have a continuous and adherent film or layer or plastic on one side of the surface, the fabric should be impervious, the conditions of note 2 of Chapter 59 should be satisfied. Cases with Similar questions for Advance Ruling: 7. Applicant submits that Following Orders have been passed by vario....
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....fabric. The applicant submitted a letter dated 31-7-21issued by Man Made Textile Research Association wherein they opined as follows: Queries 1. : Can impregnation, coating, covering be seen with naked eyes. Ans : Yes, the dots of the coating is being observed by naked eyes. Queries 2 : Can fabric be bent without fracturing, be bent manually around a cylinder of a diameter of 7 mm at a temperature between 15* C and 30*C. Ans: Yes, fabric bent without fracturing around a cylinder of a diameter of 7mm, at a temperature between 15*C and 30* C. Queries 3 : Does fabric bear design resulting from these treatments Ans: Dot coating shows pattern / design on one side of the fabric. Queries 4 : Does the fabric have a continuous and adherent film or layer or plastic on one side of the surface. Ans : The fabric has dots on one side of the surface possibly of a coating material. Queries 5 : Is the fabric impervious. Ans. The fabric does not withstand any water pressure. It becomes wet as soon as it comes in contact with water. Revenue's Submission 9. The revenue vide letter dated 20-4-21issued by the Additional Commissioner submitted that as per the Chapter Note 2 of Cust....
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....ted on one side with scattered dots and the dots are elevated in a manner that the fabric can be attached to another fabric which is used for interlining. 14. The issue before us is the Classification of subject goods. We refer to HSN 5903, to examine its applicability in subject matter. Chapter 59 reads as: "Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use". HSN 5903 reads as: Textile Fabrics, impregnated, coated, covered or laminated with plastics, other than those of Heading 5902. 15. For record, we reproduce the relevant excerpt of Explanatory notes to HSN 5903, reads as follows: "This heading covers textile fabrics which have been impregnated, coated, covered or laminated with plastics (e.g., poly(vinyl chloride)). Such products are classified here whatever their weight per m2 and whatever the nature of the plastic component (compact or cellular), provided: (1) That, in the case of impregnated, coated or covered fabrics, the impregnation, coating or covering can be seen with the naked eye otherwise than by a resulting change in colour. Textile fabrics in which the impregnation, coating or covering ca....
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....d with plastics, other than those of Heading 5902 We find that the fabric is coated with plastics and the fabric is not tyre cord fabric. 2 HSN 5903 does not apply to fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of colour The dot coating on the goods can be seen with naked eyes. 3 HSN 5903 does not apply to products which cannot, without fracturing, be bent manually around a cylinder of a diameter of 7 mm, at a temperature between 15oC and 30oC The goods can be bent manually. Further we note that the applicant has submitted letter dated 31-7-21 mentioning that the fabric bends without fracturing around a cylinder of 7mm at a temperature between 15 degree to 30 degree C. 4 HSN 5903 does not apply to products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39) The dot coating is on one....