TaxTMI 
TaxTMI 
2026 (1) TMI 120
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....ect goods of the petitioner were exported during the period from July 2011 to September 2011 and duty drawbacks were sanctioned in favour of the petitioner. On 28.02.2013, the Additional Commissioner of Customs, ICD, Whitefield, Bangalore, issued a show cause notice to the petitioner seeking recovery of excess drawback granted in favour of the petitioner. The petitioner having submitted a reply to the said notice, the Additional Commissioner of Customs, ICD, Whitefield, Bangalore, passed an order dated 09.10.2013, confirming the demand, interest, penalty etc., as against the petitioner. Aggrieved by the same, the petitioner approached the Appellate Authority who also dismissed the appeal. Aggrieved by the orders of the Original Authority and Appellate Authority, the petitioner filed a revision petition, which was partly allowed by dropping all charges, except the demand of Rs. 6,79,492/- together with interest towards the drawback granted in favour of the petitioner, who is before this Court by way of the present petition. 3. A perusal of the impugned orders will indicate that the respondents have proceeded to invoke and apply the Custom Circular No.42/2011 dated 22.09.2011 and ....
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....cation orders. Hence, Revenue has preferred these appeals. 4. Heard both sides and perused the records. 5. The learned AR for Revenue reiterated the grounds of appeal (A) to (I). He submits that as per Chapter Note 1 of Chapter 63 provides that the said Chapter applies only to made-up articles of any textile fabrics. This implies that only articles made up of textile fabrics are covered under Chapter 63 whereas FIBC is made from PP strips and classifiable under articles of plastics under Chapter 3920 90/3923 29 90. He relied on the decision of the Hon'ble High Court of Madhya Pradesh in the case of Raj Pack Well Ltd. v. UOI - 1990 (50) E.L.Τ. 201 (Μ.Ρ.) which was relied in their grounds of appeal at page 18. He also relied on the following case laws :- (a) Shellya Plastics India Pvt. Ltd. v. CCE - 2004 (174) E.LT. 431 (Kar.) (b) Sri Rama Polybags v. CСЕ - 2008 (229) E.L.T. 135 (c) UOI v. Pramact Plastics Pvt. Ltd. - 2000 (119) E.L.T. A173 (S.C.) Further, he relied on the Board's Circular dated 8/1992, dated 24-9-1992 issued under Section 37B of Central Excise Act, 1944 for uniform classification in....
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....at US Tariff Commission has also clarified that identical sample of Indonesian origin was classified under USH 6305 32 00. He also explained the definition of textiles with reference to website of Textile Industry. He relied on CCE v. Champdany Industries Ltd. - 2009 (241) ELT 481 (S.C.) and Porritts & Spencer (Asia) Ltd. v. State of Haryana-1983 (13) E.L.T. 1607 (S.C.) Shri A.K. Jayaraj further submitted that the Department issued five show cause notices for the subsequent periods against M/s KCP Karur Packaging, the respondent in these appeals, and the adjudicating authority vide order dated 7-5-2015 dropped the proceedings and accepted the classification under 6305. 7. We have carefully considered the submissions of both sides and perused the records including HSN Explanatory Notes, Board's Circular relied by the respondent and also grounds of appeal and the cross-objections. For the purpose of appreciation of facts, we take up Appeal No. E/76/2011 in the case of M/s. Karur KCP Packagings P. Ltd. 8. We find that the only issue in these appeals is whether FIBC is classifiable under Chapter 3923 29 90 as contended by Revenue or under 6305 32 00 as held by Com....
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....3200 Flexible intermediate bulk container In the British Standard EN ISO 21898-2005, the Flexible Intermediate Bulk Container (FIBC) is defined as intermediate bulk container having the body made of flexible material such as woven fabrics, plastics film or paper, designed to be in contact with the contents, either directly or through an inner liner and collapsible when empty. Further, it is stated that FIBC is designed and intended to be used for a multitude of fillings and discharges. The Central Excise Tariff is based on HSN and it is specifically mentioned in the Chapter 3923 of HSN that, the heading excludes, inter alia, house hold articles and flexible intermediate bulk containers of heading 6305. In the sub-heading explanatory note for 6305.32 it is also mentioned in the HSN that "flexible intermediate bulk containers are usually made of poly propylene woven fabrics and generally have a capacity ranging from 250 kgs. to 3000 kgs. They may have lifting straps at the four top corners and may be fitted with openings at the top and bottom to facilitate loading and unloading. They are generally used for packing, storage, transport and handling of dry, flow able m....
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....r, we find that Point No. 29 of the Minutes of the Meeting of DGFT held on 25-7-2013 clarified item FIBC which is reproduced as under- "The Committee considered the case as per agenda along with other relevant papers and considered the written comments received from Deptt. of Chemicals & Petrochemicals vide their O M. No. 46011/37/2012-PCII, dated 18-7-2013, Regional Office of Textile Commissioner, Noida vide their OM. No. 21(25)/08/CCY/RON/307, dated 29-6-2013 and e-mail dated 15-7-2013 received from DIPP The Committee observed that the textile material like manmade yarn, flexible tapes, fabrics, etc uses the synthetic polymers as raw material. Therefore, it may be drawn that the textile grade polymers as a raw material are used to manufacture the tape/stripe/yarn, etc. Since the process of manufacturing of FIBC involves extrusion of polypropylene strip from the polymers which further lead to weaving process on shuttle circular loom, therefore, FIBC is a technical textile. The Committee after deliberation decided that items in respect of Flexible Intermediate Bulk Containers are covered under ITC (HS) Code 63 and note under ITC (HS) Code 39." Therefore, both the ....