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TMI Blog1998 (7) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... Such fabric which is so impregnated is known as `prepeg-F'. It is also described as `Prepeg-C'. In glass fabric based laminated sheets glass fabric is impregnated with resin and the impregnated sheet is known as `Prepeg-G'. The question which fails for consideration is these appeals is with regard to the classification of these products, namely, `Prepeg-P', `Prepeg-F' and `Prepeg-G', for the purpose of levy of excise duty under the erstwhile Central Excise Tariff (hereinafter referred to as `the Tariff') contained in the First Schedule to the Central Excises & Salt Act, 1944. 2. The Central Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as `the Tribunal') in its judgment dated March 25, 1986 has held that `Prepeg-F' (described as `Prepeg-C') is assessable under Tariff Item 19(III), `Prepeg-P' is assessable under Tariff Item 17(2), and `Prepeg-G' is assessable under Tariff Item 22-F, of the Tariff. Civil Appeals Nos. 2448-51 of 1986 have been filed by the appellant against the said judgment of the Tribunal. 3. The matter came up for consideration again before a Bench of three Members of the Tribunal and by judgment dated June 3, 1991 the Tribunal by majority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctured either wholly or partly from cotton and includes dhoties, sarees, chadders, bed-sheets, bed-spreads, counter-panes, table-cloths, embroidery in the piece, in strips or in motifs and fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials and fabrics covered partially or fully with textile flocks or with preparations containing textile flocks, 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 embroidery in the piece, in strips or in motifs, fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials, and fabrics covered partially or fully with textile flocks or with preparations containing textile flocks, or with preparations containing textile or percentage or percentages, as the case may be, shall be in relations to the base fabrics which are embroidered or impregnated, coated or laminated or covered, as the case may be. III. Cotton fabrics impregnated, coated or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the enactment then it must be understood in the sense in which it is defined but in the absence of any definition being given in the enactment the meaning of the term in common parlance or commercial parlance has to be adopted". (p. 530) In Item 19 the expression "cotton fabrics" has been defined to include "fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials". In view of the inclusive clause in the definition of "cotton fabrics" contained in Item 19 it cannot be said that `Prepeg-G' which is impregnated cotton fabric cannot be regarded as cotton fabric for the purpose of Item 19(III) of the Tariff. 8. Item 19(III) came up for consideration before a Bench of three Judges of this Court in Collector of Central Excise, Hyderabad v. Fenoplast (P) Ltd. - 1996 (72) E.L.T. 513 (S.C.) = 1994 Supp. (2) SCC 678. In that case, the question was whether rexine cloth which was manufactured by coating of cotton fabric with PVC resin, plasticizers and other materials could be held to fall under Item 19(III) of the Tariff. One of the contentions urged on behalf of the manufacturer was that in interpreting the meaning of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l other kinds of paper (including paper or paper boards which have been subjected to various treatments such as coating, impregnating, corrugation, creping and design printing), not elsewhere specified." In 1984-85 (period relevant for Civil Appeal Nos. 2676-2678/92) Item 17 of the Tariff read as under : "Paper and Paper Board, all Sorts (including paste-board, mill-board, straw-board, cardboard and corrugated board) and articles thereof specified below, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power - (1) Paper and paper board, (including paper or paper boards which have been subjected to various treatments such as coating, impregnating, corrugation, creping and design printing), not elsewhere specified. X X X" 11. Before the Tribunal it was urged that `Prepeg-P' is not known as paper in the industry and as such it is not assessable under Item 17 of the Tariff. Rejecting the said contention the Tribunal held that Item 17(2)/17(1) covers all categories of impregnated pape ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, e.g., with plastics, rubberised paper, paper and paperboard merely impregnated with tar of bitumen. Certain papers such as wallpaper base may be impregnated with insecticides or chemicals." [pp. 667-668, First Edition (1986)]. 14. It is no doubt true that impregnated paper referred to in the said notes is one which is used largely for protective wrapping or as insulating materials. But it does not mean that paper which is impregnated with resin for the purpose of manufacturing laminated sheets cannot be regarded as impregnated paper under Item 17(2). In our opinion, therefore, the Tribunal has rightly held `Prepeg-P' as falling under Item 17(2)/17(1) of the Tariff. 15. `Prepeg-G' has been held to fall under Item 22F/22-F(4) of the Tariff. In 1977-78 [period relevant for Civil Appeal Nos. 2448-2451/86] Item 22 of the Tariff read as under : "Mineral Fibres Mineral fibres and yarns, and manufactures therefrom, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power. Explanation I. - "Mineral fibres and yarns, and manufactures therefrom" shall be deemed to include - (i) glass fibre and yarn including glass tissues and glasswo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lify it in the second part by using the words `following namely' thus explaining the items that were intended to be covered in this entry. Use of expressions `namely', or `that is to say' followed by description of goods is usually exhaustive unless there are strong indications to the contrary. Language of Serial No. 4 is plain and simple. It intends to clarify the expression `manufacture therefrom' by expanding it to include in its ambit even those manufactures in which fibre or yarn predominated in weight. But it did not go beyond it and purported to include manufactures out of manufacture of a commodity in which mineral fibre or yarn predominated." (pp. 729, 730) "Thus glass fabric manufactured out of mineral fibre is assessable to duty under Item 4 but arc chamber housing manufactured from glass fabric cannot be placed at par with glass fabric and cannot be considered as `other manufacture' of glass fibre or yarn." (p. 730) 18. In view the decision of this Court in Mahindra Engineering and Chemical Products Ltd. (supra) it must be held that `Prepeg-G' manufactured from glass fabrics would not fall in Item 22-F/22-F(4) as found by the Tribunal and that `Prepeg-G' was assessabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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