1996 (2) TMI 427 - SC - Central Excise

Whether cotton and hair beltings thus sold are cotton fabric falling under item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959 or whether they should be considered as parts or accessories of machinery falling under entry 81 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959/ Held that - Appeal dismissed. Simply because belts made out of cotton and hair beltings are used in machinery the belting does not become a part of the machinery or its accessory. The belting material consists of cotton fabric as defined in item 19 of the Central Excises and Salt Act, 1944. It cannot be equated with belts of different kinds used in different machines. Hence it is neither a part nor an accessory of a machine. It is correctly classified under entry 4 of the Third Schedule.

Summary

The Supreme Court upheld the High Court's decision that cotton and hair beltings are classified as cotton fabrics under entry 4 of the Third Schedule, not as parts or accessories of machinery under entry 81 of the First Schedule. The appeal was dismissed with costs.