TMI Blog1984 (7) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived 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. Appellants claims for refund of the amounts, paid by way of countervailin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 goods falling under TI 16A, and as such exempt from countervailing duty by virtue of Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble 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 was not attracted, so far as these goods were concerned but in respect to third consignment, he reiterate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 certificates of the manufacturers, it is established that the goods are manufactured by weaving process having warps a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 upon their composition and the pre-dominance of the material going in its making, would fall under one or other of the specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication, 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 Notification No. 6/79, dated 13-1-1979; the goods which fulfil the conditions as laid in S. No. 10 in the Table annexed to the Notification will be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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