Customs, Excise and Gold Tribunal - Delhi
Collector Of C. Ex. vs Calico Dyeing And Printing Mills Pvt. ... on 15 February, 1988
Equivalent citations: 1989(41)ELT418(TRI-DEL)
ORDER
G. Sankaran, Senior Vice President
1. This appeal is against Order-in-Appeal No. D-1546/BI/381/83 dated 12-9-1983 whereby the Collector of Central Excise (Appeals), Bombay, found in favour of M/s. Calico Dyeing and Printing Mills (the respondents) before us.
2. Briefly stated, the dispute is about the dutiability of Medium 'B' Dyed Cot ton Fabrics subjected by the respondents to the process of wax emulsion to fill up the in terstices of the fabrics with a view to reduce the air permeability to an almost negligible extent and impart no water permeability at all. The fabric is stated to be for use as umbrel la cloth and was claimed by the respondents to be "water-proofed" fabric. The Collector (Appeals) considered that the circumstances, facts and issues involved in the matter before him were identical in all respects to those in the case of M/s. Century Spg. & Mfg. Co. Ltd. v. Union of India (Misc. Petition Nos. 345 of 1972 and 793 of 1980) decided by the Bombay High Court. The Collector held that the subject product was rightly classifi able as bleached or/and dyed fabrics and allowed the appeal on that basis.
3. On 6-1-1988 when the matter came up for hearing, the Bench enquired of both parties whether the appeal stated to have been filed in the Division Bench of the Bombay High Court against the aforesaid decision had been disposed of. Both sides re quested for time to ascertain the position.
4. When the hearing was resumed today, Shri Lakshmikumaran, counsel for the respondents, drew our attention to the judgment of the Division Bench of the Bombay High Court in the above matter reported in 1985 (21) ELT 668 (Bom.). The Court upheld the judgment of the single Judge and took the view that the cloth manufactured by the petitioner (the respondents before us) should be classified as water-proofed cloth rather than as water-repellant cloth.
5. Both Shri V.M. Doiphode, Sr. D.R. and Shri Lakshmikumaran stated that on the facts and in the circumstances of We present case, the ratio of the Bombay High Court judgment would be applicable.
6. On going through the said judgment, we are satisfied that the ratio of the said judgment is applicable and accordingly, we dismiss the appeal and direct that the goods should be classified as water-proofed cloth and not as bleached or/and dyed or water repellant cloth, with consequential relief to the respondents.