TaxTMI 
TaxTMI 
1994 (2) TMI 58
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....ollector affirmed the classification of the said product under T.I. 19-III. On appeal, the Collector (Appeals) allowed the respondent's appeal. He held that the said product does not fall under T.I. 19-III but he did not say under which Item does it fall. The department appealed to the Tribunal, which agreed, by a majority that T.I. 19-III is not applicable. 3. The respondent purchases 100% cotton cloth and impregnates it with PVC resin and other materials. The composition of the ultimate product - rexin cloth - is to the following effect : "(1) Cotton fabrics 8.0% (2) PVC Resin 24.5% (3) Plasticizers (DIP/DIOP/BBP) 13.0% (4) Other [Fillers, (Calcium Carbonate) secondary plasticizers, pigments, solvents, thinners, Foaming agents 54.5% The above composition is by weight." 4. Sri Gauri Shankar Murthy, learned counsel for the Revenue, submits that the said product squarely falls within Tariff Item 19-III. In the alternative, he submits, it would fall under T.I. 22(B). The counsel complains that the Appellate Collector as well as the Tribunal not only erred in not classifying the said product under T.I. 19-III but erred ....
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....d (iii) fabrics voered partially or fully with textile flocks or with preparations containing textile flocks - (a) cotton fabric, not subjected to any process 20% ad valorem. 10% of the basic chargeable. (b) cotton fabrics, subjected to the process of bleaching, mercerising dyeing, printing, water-proofing, rubberising, shrink-proofing, organdie processing or any other process or any two or more of these processes. (Sub-item-II omitted as unnecessary) -do- -do- III. Cotton fabrics impregnated, coated or laminated with preparations of cellulose derivatives of other artificial plastic materials. The duty for the time being leviable on the base fabrics, if not already paid, plus 30% ad valorem. -do- (Sub-item IV omitted as unnecessary) Explanation : I "Base fabrics" means fabrics falling under sub-item I of this Item which are subjected to the process of embroidery or which are impregnated, coated or laminated with preparations of cellulose derivatives or of other plastic materials or which are covered partia....
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....AL PLASTIC MATERIALS NOT ELSEWHERE SPECIFIED 30% ad valorem 10% of the basic duty chargeable 6. Since the language of Tariff Item - 19 is rather involved, it would be appropriate if we read the main limb of the Item along with proviso and Explanation - I omitting unnecessary words. It would read : "Cotton fabrics means all varieties of fabrics manufactured either wholly or partly from cotton and includes fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials if (i) in such fabrics cotton predominates in weight, or (ii) such fabrics contain more than 40 per cent by weight of cotton and 50 per cent or more by weight of non-cellulosic fibres or yarn or both : Provided that in the case of fabrics impregnated etc. such predominance or percentages, as the case may be, shall be in relation to the base fabrics which are impregnated, coated or laminated or covered, as the case may be. Explanation : "Base fabrics" means fabrics falling under sub-item (I) of this Item which are impregnated, coated or laminated with preparations of cellulose derivatives or of other plastic materials." 7. It would t....
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.... for the simple reason that in that event the question of predominance of cotton, of which reference has been made in clause (i), would apparently be incongruous. It is because of this that the expression `base fabrics' finding place in the proviso should be understood as the fabric which comes into existence ultimately; otherwise, the proviso would make the main provision nugatory, which would not be the reasonable way of reading the proviso. 10. Sri Sorabjee also contended that 'rexin cloth' would not come either under T.I. 19-III or 22-B as it cannot be said to be of 'fabrics'; whereas the ultimate product to attract any of the aforesaid items must retain the identity and character of fabrics. 11. Sri Sorabjee has placed strong reliance on the decision of this Court in Multiple Fabrics Pvt. Ltd. (supra) in support of his first submission. The question in that case was whether "PVC conveyor belting" manufactured by the respondents therein fell within T.I. 22 or under the residuary Tariff Item 68. It was found therein that the product in question was "composed of synthetic resin of PVC type, reinforced with textile fabric containing 42.3% by weight of cotton and rest viscose....