Rubberised cotton hose pipes treated as cotton fabrics where rubberising remained within the statutory manufacturing definition.

Rubberised cotton hose pipes and rubberised cotton-cum-synthetic fibre hose pipes were treated as cotton fabrics because they were manufactured from cotton fabric and then rubberised. The process of rubberising was recognised as a specified process within the statutory definition of manufacture, and the interpretation applied to item 19 of the Central Excises and Salt Act was extended to these goods. On the facts found, the first product was wholly made from cotton fabric with less than 40% rubber, and the second contained about 70% cotton content, so both fell within cotton fabric for tariff purposes and were exempt under entry 37 of Schedule I to the Gujarat Sales Tax Act, 1969.

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Issues: Whether rubberised cotton hose pipes and rubberised cotton-cum-synthetic fibre hose pipes produced and sold by the assessee were covered by the definition of cotton fabrics in item No. 19 of the First Schedule to the Central Excises and Salt Act, 1944 and thereby fell within entry 37 in Schedule I to the Gujarat Sales Tax Act, 1969.

Analysis: The products were manufactured from cotton fabric and then subjected to rubberising, that is, coating with rubber. The process of rubberising is a specified process within the definition of manufacture in section 2(f), and the reasoning applicable to the interpretation of item No. 19 of the First Schedule to the Central Excises and Salt Act, 1944 applied equally to these products. On the facts found, the first product was wholly made from cotton fabric with less than 40 per cent rubber, and the second contained about 70 per cent cotton content. The Tribunal's view that the goods fell within the scope of cotton fabric was therefore sustained.

Conclusion: The products were correctly held to be cotton fabrics and were exempt under entry 37 in Schedule I to the Gujarat Sales Tax Act, 1969.

Ratio Decidendi: Where goods are made from cotton fabric and the relevant processing consists of rubberising, the goods may still fall within cotton fabric for tariff purposes if the statutory definition of manufacture encompasses that process.

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