PVC conveyor belting classified under residuary tariff item after losing its identity as cotton fabrics

P.V.C. conveyor belting was held not to answer the description of cotton fabrics under Item 19(iii) because it was not known or marketed in commercial parlance as cotton fabrics and had become a distinct finished article after dipping fabrics in P.V.C. solution and fusing multiple plies. The fabric lost its separate identity in the manufacturing process, so classification under Item 19(iii) was unsustainable. With Item 18(2) already excluded, the goods fell within the residuary Item 68 from the date of its introduction, and the demands based on Item 19(iii) were set aside.

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Issues: Whether P.V.C. conveyor belting was classifiable as cotton fabrics under Item 19(iii) of the Central Excise Tariff, and if not, whether it was liable to be classified under Item 68.

Analysis: The product was not known or marketed in commercial parlance as cotton fabrics. It was a distinct finished article manufactured by dipping fabrics in P.V.C. solution and fusing multiple plies, and in that process the fabric lost its separate identity as cotton fabric. The material therefore did not answer the description of cotton fabrics under Item 19(iii). Once classification under Item 19(iii) was ruled out, and Item 18(2) had already been excluded, the goods could only fall under the residuary Item 68 from the date of its introduction.

Conclusion: The classification under Item 19(iii) was unsustainable, and the goods were classifiable under Item 68. The demands founded on Item 19(iii) were set aside.

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