1987 (7) TMI 590

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... dditional Duties of Excise (Goods of Special Importance) Act, 1957 and Section 2(c) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 provides that the expression 'cotton fabrics' shall have the meaning assigned to it in item 19 of the first schedule to the Central Excise and Salt Act, 1944. 2. The aforesaid item 19 of the first schedule to the Central Excise and Salt Act, 1944, which is material stood at the relevant date as under: 19. 'Cotton Fabrics' means all varieties of fabrics manufactured either wholly or partly from cotton and includes dhoties, Sarees, chadders, bed sheets, bed spreads, counter panes table cloth, embroidery in the piece, in strips or in motifs and fabrics impregnated, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... roidered cotton serees. He argued that the value of the sarees increase considerably after its embroidery which is a process subsequent to the manufacture of the saree as a cotton fabric. In my opinion, this decision instead of supporting the contention negatives it in the present case. In that decision in addition to the taxing entry for 'cotton fabrics' as defined in item 19 in the first schedule to the Central Excise and Salt Act, 1944, there was a specific entry for taxing 'embroidered sarees'. The question really was as to whether embroidered cotton sarees in situation would fall within the specific entry meant for sarees embroidered or otherwise decorated or within the entry relating to 'cotton fabrics'. In thi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the conclusion that the definition of 'cotton fabrics' as above in item 19 is wide enough to include embroidered cotton sarees and for this purpose it has to be treated as the specified entry for embroidered cotton sarees. 5. The decision in Radha's Fancy Piece Goods Merchants v. State of Kerala , also supports the above conclusion. Dealing with the same question and the definition of 'cotton fabrics' contained in item 19 as above, it was held that all varieties of woven materials manufactured wholly or partly from cotton except those that fall under the exclusion clause, are as per the definition 'cotton fabrics'. It has also been pointed out that the exclusion clause applies only to fabrics manufactured part .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X