- (1.) The question in this appeal is whether 'rexine cloth' produced by the respondent falls under Tariff Item 19-111 of the Schedule to the central Excise Act, as it obtained at the relevant time. The tribunal has held, by a majority of 2:1, that it does not. The Revenue is assailing the majority opinion in this appeal.
(2.) Initially, the respondent had applied for classification of the said product under T. I. 19-111 but later by their letter dated 3/3/1981 they contended that their product does not fall within the said tariff item. When the department did not agree with their contention, they submitted a classification list under T. I. 19-111 under protest. In pursuance of certain orders passed by the High court in the writ petition filed by the respondent, a proper show-cause notice was issued to the respondent and after hearing it, the Assistant Collector affirmed the classification of the said product under T. I. 19-111. On appeal, the Collector (Appeals) allowed the respondent's appeal. He held that the said product does not fall under T. I. 19-111 but he did not say under which item does it fall. The department appealed to the tribunal, which agreed, by a majority that T. I. 19-111 is not applicable.
(3.) The respondent purchases 100% cotton cloth and impregnates it with pvc resin and other materials. The composition of the ultimate product rexine cloth is to the following effect: The above composition is by weight. ";