1996 (6) TMI 239

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....e side of it with the help of a roller operated with power and used the same on being cut into different sizes according to the requirement, for tapping/wrapping of the rubber insulated cables. The cotton fabric coated with rubber solution is still in the wet stage when it is wrapped around the cable. Thereafter, it is only vulcanized or cured. After curing, the rubberised portion remains around the cable and the cotton fabric is peeled off and thrown away. The point in dispute is whether the rubber solution-coated fabric without being vulcanized is assessable or classifiable under the erstwhile Tariff Item 19.1(b) as a "Cotton Fabric subjected to the process of Rubberising". The Original Authority has held that the said product is classifi....

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....peals) finding that the rubber solution is only to the extent of 20% i.e. 1/5th of the total contents and therefore, it cannot be described as rubberised cloth, is not sustainable. If the Tariff Entry 19.1(b) as available prior to 27-2-1986 is read, it would be clear. In this connection, he draws our attention to the Tariff Entry 19.1(b) as reproduced in the Order-in-Original, which states as follows : "....cotton fabrics, subjected to the process of bleaching, mercerising, dyeing, water proofing, rubberising, shrink proofing etc." It is argued by the learned JDR that since the cotton fabric has been subjected to the process of rubberising inasmuch as the rubber solution has been coated one side of the fabric, that stage itself is cot....

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.... the meaning of excisable goods other than cotton fabrics, which have already paid the duty. As per Government of India's decision in 1996 fabric treated with rubber solution, if not vulcanised, are not liable to Central Excise duty as processed fabrics." 6. In view of the aforesaid submissions, learned Advocate submits that there is no evidence on record adduced by the Department that the rubber solution-coated fabric in wet stage is a marketable product which can be subjected to the duty of Excise under the above Tariff Heading 19.1(b) and in the absence of any evidence adduced by the Department, the goods cannot be considered to be marketable. He relies on the Supreme Court's judgment in the case of Union Carbide reported in 1986....