LexM/S. BHOR INDUSTRIES LTD. versus THE COLLECTOR OF CENTRAL EXCISE, BOMBAY
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A
MIS. BHOR INDUSTRIES LTD.
'
II.
THE COLLECTOR OF CENTRAL EXCISE, BOMBAY
OCTOBER 26, 1999
t~
B
[DR. A.S. ANAND, CJ., S. RAJENDRA BABU AND
R.C. LAHOTI, JJ.]
Customs Tariff Act, 1985:
c
Chapter 59-Notification No. 63187 dated 1.3. 1987·-Appel/ant-
Manufacturer of 'Laminated Textile Fabrics-Filing Classification List for
'waste side strips and scrap for approval as non-excisable items-Ultimately,
Tribunal held that item consisted of 'damaged and laminated fabrics liable
to excise duty-Held, question of application of relevant notification and
D
classification of items under sub-heading 5903.19 or 5903.29 can arise only
if the material was "laminated textile fabric" and was found to be "sub-
standard or damaged"-/n the absence of any such finding, authorities
below could not have proceeded to determine proper classification-Matter
remitted to Assistant Collector for fresh disposal in accordance with law and
in particular to determine whether the items answer the description of
E "laminated textile fabrics", and, if so, the use to which the same were being
actually put.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 931 S of
1994.
F
From the Judgment and Order dated 21.1.94 of the Central Excise and
Gold (Control) Appellate Tribunal, New Delhi in A. No. E/57 of 1992-D.
Joseph Vellapalli, J.M. PateL Manoj Wad and Ashish Wad for the
Appellant.
G
T.L.V. Iyer, T.A. Khan and P. Parmeswaran for the Respondent.
The following Order of the Court was delivered :
'l
The appellant, a manufacturer of Laminated Textile Fabrics, filed
Classification List No. 1/86 for 'waste side strips and scrap' for approval as
H
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· BHOR INDUSTRIES LTD. v. C.C.E.
133
non-excisable items on the ground that there was no Entry dealing with waste A
and scraps in Chapter 59 of new tariff. In the adjudication proceedings for
approval of the classification, the Assistant Collector of Central Excise classified
both 'Foam Patty' and 'Scrap' as "finished final laminated fabric'', i.e., "rexin
-
fabric" till 28.2.1987 and thereafter as "damaged or sub-s~dard leminated
fabric" till 1.5.1988, after which these were treated as "Chindies", though B
covered by the same sub-heading 5903. The appeal of the appellant having
failed before the Appellate Collector, the matter was taken to the High Court,
when the matter was remanded to the Appellate Authority, which in tum
remanded it to the Assistant Collector. The Assistant Collector vide order
dated 14.3.1991 issued on 18.3.1991, found that the product is nothing but
"PVC laminated fabrics". It was accordingly ordered that the goods be classified C
as "PVC laminated fabrics under sub-heading 5903 .19 as "cotton laminated
fabrics" and 5903.29 as "man-made laminated fabrics" upto 28.2.1987. The
goods were later on directed to be classified under Notification No. 63/87
dated 1.3.1987, as amended, as "damaged or sub-standard textile fabrics".
J
The order of the Assistant Collector was put in issue before the Collector, D
Central Excise (Appeals). The Appellate Authority found that the products
in question were "noting but damaged or sub-standard textile fabrics laminated
with plastic". The items in question were, thus classified by the Appellate
Authority under sub-headings 5903.19 and 5903.29, upholding the
classification made by the Assistant Collector.
E
The Appellant challenged the order of the Appellate Authority before
the Customs, Excise and Gold (Control) Appellate Tribunal ("CEGAT"). It was
the case of the appellants before the CEGAT that the products were not PVC
laminated fabrics but were "waste strips" which were generated during the
manufacture of the textile fabric and given the convenient name of "Foam F
Patty" for the purposes of identification. The CEGA T did not agree and vide
an order, impugned before us, opined that "the items consist of damaged and
laminated fabrics" and were liable to excise duty as such items. In para 9 of
the order, the Tribunal also observed as follows:
"The 'Foam Patty' as such can be used as laminated fabric for G
manufacture of narrow width articles like handles of purses or shoe
straps etc., and even for manufacture of complete purses by stitching
together square/rectlfngular pieces of smaller sizes. Such articles are
seen being marketed regularly. As held by the Supreme Court, the
Court has to take into consideration not only the facts on record but H
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SUPREME COURT REPORTS (1999) SUPP. 4 S.CExcerpt shown. Read the full judgment & AI analysis in Lexace.