1979 (7) TMI 108 - CGOVT - Central Excise

Summary

Issues:
1. Classification of cotton and woollen felts as fabrics under Tariff Items 19 and 21.
2. Interpretation of the term "fabrics" in the Central Excises and Salt Act.
3. Application of Supreme Court and Punjab High Court judgments in determining classification.

Detailed Analysis:
1. The judgment addresses the issue of whether cotton and woollen felts manufactured by the petitioners are liable to duty as fabrics under Tariff Items 19 and 21. The Assistant Collector initially classified the goods as fabrics, which was upheld by the Appellate Collector in some instances but reversed in later decisions. The petitioners argued that the Supreme Court judgment on woollen felts and the Punjab High Court judgment on textiles should apply to their case.

2. The central question is the interpretation of the term "fabrics" in the Central Excises and Salt Act. The Government analyzed the Supreme Court judgment and the Punjab High Court judgment, concluding that both were not directly applicable to the present case. The Government emphasized that the impugned goods were woven materials, unlike the non-woven felts in the Supreme Court case. They highlighted that the Punjab High Court judgment pertained to a Sales Tax case and was not directly relevant to the Central Excise Tariff.

3. The judgment also delves into the scope of Tariff Items 19 and 21, which define cotton and woollen fabrics. The Government rejected the petitioners' argument that fabrics should only include woven materials used as garments, citing exemption notifications that encompass various woven materials regardless of end use. The Assistant Collector's detailed examination of the issue, including reference to international market standards, supported the classification of the impugned goods as fabrics.

4. The Government dismissed the petitioners' contention regarding unchallenged affidavits from persons in trade, noting that the Assistant Collector had already considered and rejected them. The judgment referenced a recent Gujarat High Court decision affirming that fabric means woven material. Ultimately, the Government upheld the Assistant Collector's classification of the impugned goods as fabrics and overturned the Appellate Collector's decisions based on the Supreme Court and Punjab High Court judgments.

In conclusion, the judgment clarifies the classification of cotton and woollen felts as fabrics under specific Tariff Items, emphasizing the distinction between woven and non-woven materials and the broad scope of the term "fabrics" in the Central Excise Tariff.