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TMI Blog1996 (12) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... under Tariff Item 16A(2) of erstwhile Central Excise Tariff as Rubber products and not under Item 22.1(B) of Central Excise Tariff as existed prior to 28-2-1986. 3. Arguing for the Revenue the ld. D.R. submitted that the Respondents purchased unprocessed tyre cord fabrics and subjected them to process of dipping in resorcinol formaldehyde latex solution and drying by heat setting. The fabric even after this treatment predominates the decision of the Bombay High Court in case of M.R.F. Ltd. v. C.C.E. - 1985 (22) E.L.T. 5 is not applicable. The Hon'ble Apex Court in case of Delhi Cloth & General Mills Co. Ltd. v. State of Rajasthan & Others - 1980 (6) E.L.T. 383 (SC) held that tyre cord warp sheets is a fabric and is to be considered as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ude the rayon tyre cord fabric manufactured by the appellants. The Hon'ble Apex Court on the basis of Technical books dealing with textile terms and also ISI specifications held that tyre cord warp fabrics are fabrics. The relevant portions of the judgment are extracted below : "9. What is fabric ? The "Mercury" Dictionary of Textile terms defines "fabrics" as a term which covers "all textiles no matter how constructed, how manufactured or the nature of the material from which made" and the expression "Textile" is described as "any product manufactured from Fibres through twisting, interlacing, bonding, looping or any other means, in such a manner that the flexibility, strength and other characteristic properties of the individual fibres a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5th March, 1973 made by the Rajasthan State Government under S. 4(2) of the Rajasthan Sales Tax Act. The notification provided that in the case of unprocessed rayon and artificial silk fabrics the exemption from sales tax would apply only if the additional duty is leviable on them under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and such goods had not specifically been exempted from the said duty and the dealers thereof furnished proof to the satisfaction of the assessing authority that such duty had been paid. Therefore, as from 5th March, 1973 the exemption from tax under the Rajasthan Sales Tax Act was available only if additional excise duty was leviable and the dealer had established that he had paid such d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f fabric is included. 6. It was contended that the Hon'ble Apex Court's decision in case of D.C.M. Ltd. v. State of Rajasthan & Others (supra) concerned Sales Tax matters. This, however, does not materially alter the position. In fact Hon'ble Apex Court was considering the question of classification of fabrics for the purpose of additional duty of Excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and held that goods were classifiable under Item 22. 7. Madras High Court in case of Madura Coats Ltd. v. C.C.E., Madurai - 1995 (79) E.L.T. 567 (Mad.) while examining the classification of the Tyre Cord fabric relied upon the Hon'ble Apex Court judgment in case of D.C.M. (supra) which held such goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Para 10 (521) 1994 E.L.T. (72) in case of C.C.E., Hyderabad v. Fenoplast (Pvt.) Ltd. "We have already held that the predominance or the percentages referred to in clauses (i) and (ii) (occurring at the end of the first para of the Tariff Item) is applicable only in relation to the base fabric as clarified and defined in the Proviso and Explanation (I). It must follow therefrom that the question of predominance or percentages is irrelevant in the case of respondents product inasmuch as the base fabric in the respondent's production is 100% cotton. The argument to the contrary is, however, based upon decision of this Court in Multiple Fabrics. The said decision dealt with Tariff Item 22 and the product concerned was P.V.C. conveyor belti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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