COLLECTOR OF CENTRAL EXCISE, CALCUTTA v. MULTIPLE FABRICS PVT. LTD. ETC

"The sample is in the form of cut-piece of black coloured E Belting of width 10 c.ms. and thickness 9 m.m. It is com- posed of synthetic resin of P.V.C. type, reinforced with textile fabric containing 42.3% by weight of cotton and rest viscose (man-made filament yarns of cellulosic origin). Percentage of textile fabric = 43.3. Percentage of P.V.C. Compound= 56.7%". F This position has not been disputed at any stage nor even before us. The Tribunal has recorded a finding that P.V.C. compounding w_as done simultaneously with the weaving of the fabric from yarn which clearly indicated that the process ofmanufacture was conversion from Ci yarn to fabric as also the application of the P. V .C. Compound carried on at the same point of time. Learned counsel for the appellants who initially attempted to challenge this fact was ultimately obliged to accept the situation as a finding of fact. In fact before the Tribunal the departmental representative had relied upon this position as would appear from the judgment of the Tribunal. H .,.__ ~- 1 • ~ 1228 SUPREME COUR'f REPORTS [1987) 2 S.C.R. A It is not disputed that if the commodity would not be covered by Item 22, residuary Item 68 of '.:Oe Schedule would be applicable. Item 22 provides thus:- B c D E F "MAN-MADE FABRICS- "Man-made fabrics" means all· varieties of fabrics manu· factured either wholly or partly from man-made fibres or yarn and includes embroidery in the piece;· in strips or in motil's, fabrics impregnated, coated or laminated with pre parations of cellulose derivatives or of other artifitial plastic materials and fabrics covered partially or fully with textile flocks or with preparations containing textile flocks, in each of which man-made (i) cellulosic fibre <lt yam, or (ii) non-cellulosic fibre or yarn, predominates in weight: Explanation I: "Base fabrics" means fabrics falling under sub-item (1) of this Item Which are subjected to the process of embroidery or which are impregnated, ~oatetl or lami nated with preparations of cellulose derivatives or of other plastic materials or which are covered partially or fully with textile flocks or with preparations containing textile flocks. Explanation II: ..................................... . Explanation Ill: Explanation II under Item No. 19 shall, so far as m!iy be, apply in relation to this Item as it applies in relation to that Item." + It is accepted that yarn is woven into fabric. Item 19 deals with cotton fabrics while Item 22 deals. with man-made fabrics. On the footing recorded by the Tribunal, it.is claimed that'there was no pre existing base fabric and the manufacturing process simultaneously brought into existence the commodity by weaving yarn into fabric and application of P.V.C. Compound. In view of the higher percentage of P.V.C. Compound in com- G modity, it becomes difficult to treat the ultimate goods as man-made fabrics for holding that it is covered by Item 22. Upon this analysis it follows .that the Tribunal came to the correct conclusion when it held t))at the goods were not covered by Item 22 and, therefore, the residuary item 68 applied. All these appeals are without any merit and are dismissed. Each of the respondents should be entitled to its costs. · N.P.V. Appeals dismissed. ' H ' •