1998(11)LCX0146

IN THE CEGAT, COURT NO. III, NEW DELHI

S/Shri A.C.C. Unni, Member (J) and V.K. Agrawal, Member (T)

SWARUP FIBRES INDUSTRIES LTD.

Versus

COLLECTOR OF C. EX., MEERUT

Final Order No. 1193/98-C, dated 18-11-1998, in Appeal No. E/1893/93-C

CASE CITED

Collector v. Woodcraft Products Ltd. — 1995(03)LCX0070 Eq 1995 (077) ELT 0023 (S.C.) — Relied on                                       [Para 4]

Advocated By : Ms. Monica Singal, Advocate, for the Appellant.

Shri Sumit Das, JDR, for the Respondent.

[Order per : V.K. Agrawal, Member (T)]. - The issue involved in this appeal filed by M/s. Swarup Fibres Industries Ltd. is whether Vulcanised Fibre is classifiable under sub-heading 4823.90 as claimed by them or under sub-heading 3920.31 as confirmed in the impugned order.

2. Miss Monica Singal, learned Advocate, submitted that before 1-3-1988 there was a specific sub-heading in the Schedule to the Central Excise Tariff Act which covered Vulcanised Fibre. The sub-heading was 3913.30. In their earlier case, when the issue of classification of Vulcanised Fibre came before the Appellate Tribunal, it was decided that the product would fall under sub-heading 3913.30 as there was a specific heading in the Tariff. She submitted that even at that time Revenue claimed the classification of the product under sub-heading 3920.22. With effect from 1-3-1988 this sub-heading 3913.30 was deleted from the Tariff. She drew our attention to the process of manufacture which is given in the impugned order (page 19 of the appeal papers) according to which, the basic raw material is 100% cotton rag absorbent paper which is chemically treated with concentrated solution of Zinc Chloride. She also mentioned that in the manufacture of the impugned product no component of the plastic is used. She further contended that before 1988 the product was classified under sub-heading 3913.30 which covers primary form of the plastic. If the impugned product was taken to be a primary form, subsequently it cannot be treated as a product of plastic. Referring to Rule 3(b) of Interpretative Rules, she submitted that as paper predominates, it has to be classified under sub-heading 4823.90.

3. Countering the argument, Shri Sumit Das, learned DR, submitted that in HSN the products of Vulcanised Fibres are specifically covered by sub-headings 3920.72. As the Central Excise Tariff does not have many sub-heading as are contained in HSN, the Department has classified the product under sub-heading 3920.31. The main heading is “other plates, sheets etc.” He , therefore, contended that the sheets of Vulcanised Fibre are correctly classifiable under sub-heading 3920.31.

4.  We have considered the submissions of both the sides. Note 1 to Chapter 39 of the Tariff provides that throughout the nomenclature, any reference to `plastics’ also includes Vulcanised Fibre. The learned DR has rightly shown that the plates, sheets, film, etc. of Vulcanised Fibre are classifiable under main Heading 3920 of the HSN and sub-heading 3920.72. It has been held by the Supreme Court in Collector of Central Excise, Shillong v. Woodcraft Products Ltd., 1995(03)LCX0070 Eq 1995 (077) ELT 0023 (S.C.) that in case of dispute about classification of any product a reference should be made to the HSN on which the Central Excise Tariff is based. As the products of Vulcanised Fibre are classifiable in HSN under sub-heading 39.20, we find no infirmity in the impugned order and, therefore, we reject the appeal filed by the appellants.

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Equivalent 1999 (105) ELT 348 (Tribunal)