2005 (5) TMI 159

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....aft Lined bags, with or without liner. While Appear No. E/424/98-Mum, relates to the confirmation of the consequential demands for the period from April 1994 to Feb. 1995. 1.2 The break-up of demand, item-wise as given by the appellant is as under :- (a) HDPE Laminated Fabrics Rs. 14,931/- (b) Bags without liner Rs. 35,29,526/- (c) Bags with liner Rs. 73,60,546/-   Total Rs. 1,09,05,003/- The appellants had classified the above goods under heading 59.09 and have paid duty at the rate of 15% ad val. as applicable at that time. Department has classified the above bags under sub-heading 3923.20 and the Laminated fabrics under Heading 39.20 attracting duty at the rate of 30% ad val., accordingly....

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....lassifying the goods under Chapter 39 in the impugned orders passed by the lower authorities in both the appeals. This Section 37B order of the CBEC, relying on the decision of the MP High Court in the case of Raj Packwell's case - 1990 (50) E.L.T. 201 (MP) stipulates that HDPE strips, tapes and the fabrics/sacks made therefrom are classifiable under Chapter 39. (c) The appellant contend that Section 37B order is not binding on the appellants & question the same before us reliance on the following decisions: (i) Usha Martin Industries - 1997 (94) E.L.T. 460 (S.C.) - para 21 (ii) Paper Products Ltd. - 1999 (112) E.L.T. 765 - para 4 (iii) Birla Jute & Industries - 1992 (57) E.L.T. 674 (Cal.) - para 18(2....

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....le of classification adopted in an order passed under Section 37B by Board would not be automatically applied for deciding the classification of other commodity. In any case, the said order dated 24-9-1992 of the Board does not deal with the classification of HDPE fabrics laminated with plastics or paper. Hence, the reliance on the order dated 24-9-1992 in the present case is not sustainable. (f) In the present case, the goods are classifiable under Chapter 59 in view of the Circular dated 18-8-1989 of the Board wherein Board has dealt with the very same goods viz HDPE fabrics laminated with LDPE and kraft paper. It is well settled that circulars issued by the Board are binding on the departmental officers, even if it is inconsiste....

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....so Part (II) of the General Explanatory Notes to Section XI]" & Sub-Chapter 1 of Chapter 63 of HSN covers other made up textile articles. Under the Sub-Chapter 1 falls, Heading 63.05 of HSN specifically covering bags or sacks of a kind used for packing of goods as it is found that relevant portion of heading 63.05 of HSN reads as under : 63.05 - Sacks and Bags, of a kind used for the packing of goods 6305.10 - Of jute or of other textile bast fibres of heading No. 53.03 6305.20 - Of cotton   - Of man-made textile materials 6305.32 - Flexible intermediate bulk containers 6305.33 - Other, of polyethylene or polypropylene strip or the like This heading covers textile sacks and....