AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
1984 (7) TMI 377
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.... appears-from the grounds of the Revision Petition, which has since been received by way of transfer, under the provisions of Section 131B (2) of the Customs Act, 1962 to be treated and disposed of as an appeal, that the goods of the above description were imported by means of three separate consignments covered by (1) bill of entry No. D-172 dated 2-2-1978 ; (2) bill of entry No. D-174 dated 2-2-1978; and (3) bill of entry No. D-801 dated 10-1-1978. Whereas the first two consignments were treated to be falling under Tariff Entry 22AA of the Central Excise Tariff (CET for short), for the purpose of additional duty of customs; commonly known as countervailing duty, the third was assessed under SI 19-1 of the CET, for the said purpose. 2.&....
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....T was erroneous and that they had explained in their personal hearing before the Assistant Collector as well as Appellate Collector that the goods were required for manufacturing card clothing, meant to form a base for components of textile machinery, and, thus lost the character of textile fabrics. They, further, contend that in case the imported goods were to be treated as fabrics under TI 19 of the CET, then also countervailing duty was not leviable, by virtue of a notification, being Notification No. 139/77, dated 18-6-1977 as amended by Notification No. 6/79, dated 13-1-1979. They plead in the alternative that the foundation cloth which has been held to be falling under T.l. 22AA being impregnated with rubber, was to be treated as good....
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.... and refund claims had been wrongly rejected, and that the orders of the lower authorities were liable to be set aside. 7. Shri Vineet Ohri, SDR, arguing for the respondent defended the order of the lower authorities, and pointed out that the goods of at least one Bill of Entry No. D 801 dated 10-1-1978 acquired the character of goods falling under T.I. 19-III inasmuch as according to the technical certificate their was rubber facing, which is tantamount to lamination, whereas there was pre-dominance of cotton cloth in all the products, giving them basically the character of cotton fabrics, and thus classification of the other two for the purpose of countervailing duty under T.I. 19-1 was correct, though he conceded that T.I. 22AA w....
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....er's certificates at page 14 of the paper book further reveals that the whole composition is that of cloth inasmuch one layer of cotton cloth is super-imposed upon the other, the bonding agent being natural rubber varnish. In between, there is layer of linen cloth and then on top again cotton cloth. The cloth, whether cotton or linen, is shown to be a woven material with warp and weft, which is the basic property of a cloth/fabric. Even the material with which it is woven is shown in the invoice at page 10 of the paper book to be of '4 ply 1 linen'. We, therefore, have no hesitation in holding that the goods retain the character of cloth, and there is no infirmity in the finding of the Appellate Collector who has also observed that from the....
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....xtiles), "Dress, furnishing, etc., fabric woven from yarn prepared from the fibres." (Ref. : Chambers'Dictionary of Science and Technology, Revised Edition). Even according to the Indian Standards (ISI Specification No. 2364-1979), goods used as industrial fabrics, defined as "Fabrics made from man-made or natural yarn which are commonly used as machines, such as betting duck, filter cloth, sizing flannel, etc." ; retain the character of fabrics. 12. Consequently, even though the imported goods were to be used for the manufacture of flexible card cloth, which are ultimately to form part of textile machinery components, they would certainly retain the character of fabrics, and in the light of what has been discussed above, depending ....
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....ations, by reference to T.I. 22AA, is not entertainable for the reason that we have held that these goods do not fall under the said classification, nor can the benefit of exemption notification, issued for goods under T.I. 16A, be extended to the appellant, as the goods in question do not fall in that category. 15. In the result, the appeal so far as the plea for classification under T.I. 68 is concerned, is dismissed but in view of the notification on which appellants placed reliance, which to begin with was Notification No. 91/69, dated 1-3-1969, as extended from time to time; at the relevant time the notifications in operation being the same as referred to by the appellants; namely, No. 139/77, dated 18-6-1977 as amended by Noti....