TMI Blog1984 (2) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... valorem ." 3. On 19th June, 1971 a trade notice was issued by the Bombay Central Excise Collectorate which stated that electric insulating tape was a tape impregnated or coated with insulating compounds used for covering joints in, and open ends of electric wires and cables. Such tape might have for backing textiles, cellulosic film or paper. It was liable to Excise duty under Item 59. 4. On 17th April, 1972 the Petitioners wrote to the Superintendent of Central Excise stating that they had started manufacture of non-adhesive tapes which, they claimed, fell outside the Central Excise Tariff. They sent a sample and asked the Superintendent to confirm that these tapes could be cleared without following Central Excise formalities. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for adjudication upon the ground that the Petitioners had not been supplied with a copy of the market enquiry report. 7. On 19th May 1976 the Excise authorities informed the Petitioners that the market enquiry report was based on tapes made by manufacturers other than the Petitioners since the Petitioners' tapes were not available in the Bombay market. On 28th May 1975 the Petitioners informed the Excise authorities that their tapes were dissimilar to those in respect of which inquiries had been conducted and that the results of such inquiries were not applicable to their case. 8. The Petitioners were accorded a personal hearing. They produced a letter from Messrs. Larsen Toubro Limited which stated that the sample roll of Rigid grade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only secondary. It was argued that the insulating tape manufactured by the Petitioners could not be used for high or medium voltage insulating tapes. It had been conceded by the Petitioners that the rigid grade PVC tapes (non-adhesive) manufactured by them could be used as an insulating tape for low voltage insulation. This was confirmed by letters received from Hindustan Cables Ltd. and Bush India Ltd. The item merely mentioned "electric insulating tape." The description by itself did not state that the tapes covered under it were used for medium or high voltage insulation. The restrictive interpretation given by the Petitioners was not, therefore, correct since the Schedule itself had placed no such restriction. 10. The petitioners pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the sales tax laws. The question was whether "arc carbons" fell under an item which classified "cinematographic equipment including cameras, projectors and sound recording and reproducing equipment lenses, films and parts and accessories required for use therewith." The taxing authorities concluded that the common or ordinary use of arc carbons was that they exuded the powerful light cast, through the projectors, on cinema screens. The Court observed that the deciding factor was the predominant or ordinary use. It was not enough to show that the article could be put to other uses also. It was its general or pedominant user which seemed to determine the category in which an article would fall. The fact that the arc carbons could also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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