Statutory definition of rags under excise rules covered cut cotton pieces, making the duty demand unsustainable.

Cut pieces of cotton fabric measuring 50 centimetres were held to fall within the special tariff definition of "rags" as "damaged or sub-standard cotton fabrics" under the tariff entry and Rule 96A. The definition was treated as an express statutory one, not limited to the ordinary common-parlance meaning of rags or to fabrics actually damaged in the usual sense. Because the goods were more than 23 centimetres but less than 92 centimetres in length, they satisfied the statutory description and were exempt from excise duty; the duty demand was therefore unsustainable.

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Issues: Whether cut pieces of cotton cloth measuring 50 centimetres each fell within the statutory definition of "rags" as "damaged or sub-standard cotton fabrics" under the tariff and rules, so as to be exempt from excise duty.

Analysis: The relevant tariff entry and Rule 96A defined "damaged or sub-standard cotton fabrics" to include "rags", meaning cut pieces of cotton fabrics more than 23 centimetres but less than 92 centimetres in length. The definition was a special statutory one and was not confined to the common parlance meaning of rags or to fabrics that were actually damaged or sub-standard in the ordinary sense. Since the goods in question were each 50 centimetres long, they squarely fell within the statutory description.

Conclusion: The goods were rags within the statutory definition and were exempt from excise duty. The duty demand was unsustainable.

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