Concessional duty on textile fabrics denied where the base fabric fell outside the notification's prescribed chapter.

Concessional duty under Notification No. 63/87 was confined to textile fabrics coated, impregnated, covered or laminated with base fabrics of cotton under Chapter 52, so use of knitted cotton fabrics of Chapter 60 as the base fabric did not qualify. The description "others" in the classification list was treated as referring only to the final product and not as disclosure of the base fabric used. As the record did not establish that raw material registers were regularly submitted and verified, suppression was found and the extended period of limitation was held applicable. The notification benefit was denied and the demand was sustained.

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Issues: Whether the appellants were entitled to the concessional rate of duty under Notification No. 63/87 dated 1-3-1987 and whether the demand was barred by limitation on account of alleged disclosure of the base fabric used.

Analysis: The concession under the notification was available only where the textile fabrics were coated, impregnated, covered or laminated with base fabrics of cotton of Chapter 52. The appellants used knitted cotton fabrics of Chapter 60 as the base fabric. The expression "others" in the classification list was held to describe only the final product and not to amount to disclosure that a base fabric from a different chapter was being used. The record did not support the claim that raw material registers were submitted and verified by the Department throughout the relevant period. On that basis, the classification was treated as , and the extended period was held applicable for suppression.

Conclusion: The benefit of the notification was rightly denied, the extended period of limitation was validly invoked, and the appeal was liable to be dismissed.

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