Cotton fabrics classification: collar cuttings stayed within the specific entry and escaped the residuary category.

Inter-lining collar cuttings and inter-lining double collar cuttings were held to fall within the referential definition of cotton fabrics under entry 37 of Schedule I because the adopted Central Excise definition covered fabrics wholly or partly made of cotton, including fabric coated or impregnated with artificial plastic materials. Mere cutting of cotton cloth to size and shape did not change its commercial character, and the double collar cuttings retained that character as the proviso to item 19 was not breached. Entry 51 did not apply because the goods were not ready-made garments or articles ready for immediate use, and the residuary entry was unavailable where entry 37 governed the goods.

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Issues: Whether inter-lining collar cuttings and inter-lining double collar cuttings were classifiable as cotton fabrics under entry 37 of Schedule I to the Gujarat Sales Tax Act, 1969, or fell under entry 51 of Schedule I or the residuary entry 13 of Schedule III.

Analysis: Entry 37 was a referential entry adopting the definition of cotton fabrics from item 19 of the First Schedule to the Central Excises and Salt Act, 1944. That definition was inclusive and covered fabrics manufactured wholly or partly from cotton, including fabrics impregnated or coated with artificial plastic materials. Mere cutting of cotton cloth to size and shape did not convert the goods into a different commercial product. The double collar cuttings also retained the character of cotton fabrics because one component was impregnated with plastic materials and the proviso to item 19 was not violated. Entry 51 did not apply because the goods were not ready-made garments or articles made ready for immediate use, but were only collar linings meant for insertion by tailors. The residuary entry could not be invoked once the goods were covered by entry 37.

Conclusion: The goods were cotton fabrics within entry 37 of Schedule I and were not assessable under entry 51 or the residuary entry 13; the reference was answered in favour of the assessee.

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