Trade meaning of fabric controls tariff classification; PVC conveyor belting fell under the residuary entry, with penalty set aside.

PVC mining conveyor belting was held not to qualify as man-made fabrics under Item 22(3) because classification depended on the identity of the finished article as marketed and on whether it answered the ordinary trade meaning of "fabric". Although textile material was embedded in the product, its thick, stiff structure and substantial PVC content meant it lacked the normal characteristics of fabric and could not be treated as an impregnated, coated, or laminated fabric. The goods were therefore correctly classifiable under the residuary Item 68, the demand was to be reworked on that basis, and the penalty was set aside.

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Issues: Whether PVC mining conveyor belting, as cleared and marketed, was classifiable as man-made fabrics under Item 22(3) of the Central Excise Tariff or under the residuary Item 68, and whether the penalty imposed was sustainable.

Analysis: The relevant enquiry was the identity of the finished product as marketed, not the character of the base fabric used in manufacture. The expression "man-made fabrics" in Item 22 and sub-item (3) thereof still required the goods to answer the description of "fabrics" in the ordinary trade and commercial sense. The belting was thick, stiff, and contained a substantial proportion of PVC compound, so it did not retain the normal characteristics of fabric. Trade and technical references to industrial fabrics could not override the general understanding of fabric in common use. The belting therefore could not be treated as an impregnated, coated, or laminated fabric merely because textile material was embedded in it.

Conclusion: The goods were not classifiable under Item 22(3) and were correctly classifiable under Item 68. The demand was to be reworked accordingly and the penalty was set aside.

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