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TMI Blog1988 (7) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... adhesive tapes falling under Item No. 60 of the First Schedule ( CET for short) to the Central Excises and Salt Act, 1944. The manufacturing process is as follows :- Medium bleached duty paid cloth is the base material for the manufacture of Waterproof cloth adhesive tapes". The above-said cloth which is in roll form is mounted on the coating machine and release coating is done on one side while the cloth is moving simultaneously through the drying chamber and getting rolled at the other end in the course of a continuous integrated process. The coated roll comes back to the feeding end again and adhesive mass is applied evently on the reverse side which again after passing through the drying chamber is spread over in big iron round ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from 1-10-1975 onwards. The respondents challenged this order before the Collector of Central Excise (Appeals) who, by his order dated 10-11-1983, found in favour of the respondents and he d that no goods falling under Item No. 19 l(b) or 19 III came into existence at the intermediate stage and that the process of applying release coating on one side did not make the cloth waterproof cloth or impregnated cloth. It is against this order that the Collector of Central Excise, Bombay-II, has filed the present appeal. 3. We have heard Shri L.C. Chakraborty, DR, for the appellant-Collector and Shri Haresh Jagtiant, advocate, with Shri L.P. Daulat, advocate, for the respondents. 4. The issue which arises for consideration is whether the rolls ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marketable, they would not be chargeable to excise duty. 7. We have considered the submissions of both sides. The respondents had produced before the lower authorities affidavits from two experts and opinions from 2 members of the trading community. The first affidavit is by Shri Kiran Malhotra who is highly qualified technically and has considerable experience in the manufacture of adhesive and other tapes. He deposes that the process of manufacture of the subject adhesive tapes is a continuous one starting from the waterproofing release coating of the base cloth on one side and coating the other side with adhesive mass and slitting the same into the required sizes of tapes, the end product. The waterproofing process is applied to one s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluded that the release coat cloth cannot as such be marketed as waterproof cloth for the purpose of making rain coats, umbrellas and other similar goods. Next, we have a letter dated 9-1-1977 from Apurva Textiles, dealers in Art Silk and Synthetic Fabrics at Bombay. They say that the sample of the respondents goods was not marketable and, in support of this, have enclosed a letter dated 6-1-1977 from S. Ghanshyam Das, Interlining Cloth Merchants, stating that the cloth was not at all marketable. Lastly, we have a letter dated 11-1-1977 from Rungtas Private Limited, wholesalers in Bhor Embossed and Plain Binding cloth at Bombay stating that there is no market for the release coating cloth. 8. In the order passed by the Assistant Collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India and Others v. Delhi Cloth and General Mills Company Ltd. and Others -1977 ELT (J 199) the Supreme Court has, after referring to the meaning of the word goods in dictionaries and other works, observed in para 17 of its judgment that to become goods , an article must be some thing which can ordinarily come to the market to be bought and sold. The same view was followed by the Supreme Court in South Bihar Sugar Mills Ltd. and Another etc. v. Union of India and Another etc. -1978 ELT (J 336). The manner of dealing with affidavits has been spelt out at some length by the Bombay High Court in its judgment in the case of Subhash Chandarnishat v. Union of India and Another-1979 ELT (J 212). At page J 223 of the report, the High Court rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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