TMI Blog1986 (10) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor under order, dated 7-7-1979 held these discs liable for duty under tariff Item No. 22F CET as they were not eligible for the exemption under notification No. 87/76-C.E. dated 16-3-1976. On Appeal the said order was set aside by the Appellate Collector under order, dated 20-11-80. He held that the fabric continues to be the fabric even when cut into discs and as the entitlement of full exemption to the fabrics is not in dispute the discs were also entitled to the same exemption. The Central Government being of the view that the said order of the Appellate Collector was not proper, legal and correct, issued notice, dated 14-5-1981 under Section 36(2) of the Central Excises and Salt Act calling upon the manufacturer to show cause why the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Collector proceeded on the basis that the question of full exemption to the fibre glass fabrics is not in dispute and that the Assistant Collector s conclusion that the exemption cannot be extended to the stage of cut discs is not tenable since the fabric continues to a fabric even after being cut into discs. The review notice of the Government mentions two reasons only as to why the findings of the Appellate Collector were not proper. They were (i) on account of impregnation the goods had lost their identity as glass fabrics and (ii) the goods are not glass fabrics in commercial parlance. In view of the fact that these two grounds had been mentioned in the review notice we think that it would be necessary to consider these two groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioned room so that the fabric may retain its pliability and that as and when discs are to be cut the fabrics are taken out and the discs are cut for use immediately in the manufacture of the grinding wheels and that if the fabrics or the cut discs are kept for a long time in an non-airconditioned place they would lose their plaibility and would become rigid and therefore would be unusable thereafter. Thus the assessee had contended at that stage that these cut discs had no separate commercial name or identity than the glass fabrics themselves. As noted earlier, the Appellate Collector had upheld this contention. In spite of it the review notice proceeds on the basis of a different commercial identity for the discs than the fabrics but in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that going by the principle of contemporanea expositia, this shows the framers of the tariff entry 22F C.E.T. clearly intended the glass fabrics to fall under this entry and on the same logic impregnated glass fabrics would also be covered under this entry. We, therefore, hold that the impregnated glass (sic) fall under tariff Item 22F C.E.T. He contends that this would show that the Department itself as a general rule had been treating impregnated glass fabrics also as entitled to exemption treating them as glass fabrics only as mentioned in notification No. 87/76. 6. If the processed glass fabrics were to be treated as glass fabrics only for the purpose of exemption under Notification No. 87/76 the mere cutting of the fabrics into di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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