- (1.) The appellant, a manufacturer of Laminated Textile Fabrics, filed Classification List No. 1/86 for 'waste side strips and scrap' for approval as nonexcisable items on the ground that there was no Entry dealing with waste and scraps in Ch. 59 of new tariff. In the adjudication proceedings for approval of the classification , the Assistant Collector of central Excise classified both 'foam Patty' and 'scrap' as "finished final laminated fabric". i. e. , "rexin fabric" till 28/2/1987 and thereafter as "damaged or sub standard laminated fabric" till 1/5/1988, after which these were treated as "chindies". though covered by the same sub-heading 5903. The appeal of the appellant having failed before the Appellate Collector , the matter was taken to the High court, when the matter was remanded to the Appellate Authority, which in turn remanded it to the Assistant Collector. The Assistant Collector vide order dated 14/3/1991 issued on 18/3/1991. found that the product is nothing but "pvc laminated fabrics". It was accordingly ordered that the goods be classified as "pvc" laminated fabrics" under sub-heading 5903.19 as "cotton laminated fabrics" and 5903.29 as "manmade laminated fabrics" upto 28/2/1987. The goods were later on directed to be classified under Notification No. 63/87 dated 1/3/1987, as amended, as "damaged or sub-standard textile fabrics".
(2.) The order of the Assistant Collector was put in issue before the Collector, central Excise (Appeals). The Appellate Authority found that the products in question were "nothing but damaged or sub-standard textile fabrics laminated with plastic". The items in question were, thus, classified by the Appellate Authority under sub-headings 5903.19 and 5903.29, upholding the classification made by the Assistant Collector.
(3.) The Appellant challenged the order of the Appellate Authority before the Customs. , Excise and Gold (Control) Appellate tribunal ("cegat"). It was the case of the appellants before the CEGAT that the products were not PVC laminated fabrics but were "waste strips" which were generated during the manufacture of the textile fabric and given the convenient name of "foam Patty" for the purposes of identification, The CEGAT did not agree and vide an order, impugned before us, opined that "the items consist of damaged and laminated fabrics" and were liable to excise duty as such items. In para 9 of the order, the tribunal also observed as follows: "the 'foam Patty' as such can be used as laminated fabric for manufacture of narrow width articles like handles of purses or shoe straps etc. and even for manufacture of complete purses by stitching together square/rectangular pieces of smaller sizes. Such articles are seen being marketed regularly. As held by the Supreme court, the court has to take into consideration not only the facts on record but also the facts of life. Further, the test report also clearly shows that the goods are laminated fabrics".;