Glass fibre tapes treated as fabrics for exemption under Notification No. 52/86-C.E., defeating higher duty classification.

Glass fibre tapes were treated as fabrics for purposes of Notification No. 52/86-C.E. because a tape was regarded as a narrow woven fabric, and its width or form did not take it outside the exemption entry. Textile definitions and tariff practice supported classification of tapes within the genus of fabrics rather than under the higher duty category. On that basis, the contrary classification adopted in the impugned order was held unsustainable, and the tapes qualified for the nil rate of duty under the notification.

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Issues: Whether glass fibre tapes manufactured by the assessee were covered by the nil rate entry in Notification No. 52/86-C.E. as fabrics, or were correctly classified under the higher duty entry.

Analysis: The relevant inquiry was whether tapes could be treated as fabrics for the purpose of the exemption notification. The reasoning accepted that tape is a narrow woven fabric, and that the width and nature of the material did not justify excluding it from the expression used in the exemption entry. Reference was also made to textile definitions and to the treatment of tapes in tariff practice, which supported the view that tapes fall within the genus of fabrics rather than outside it. On that basis, the contrary view taken in the impugned order was found unsustainable.

Conclusion: The tapes were held eligible for the benefit of the nil rate entry under Notification No. 52/86-C.E., and the demand of duty on that basis could not stand.

Final Conclusion: The assessee succeeded on the classification question relating to tapes and obtained the corresponding consequential relief.

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