- (1.) Whether friction cloth/rubberised cloth produced at an intermediate stage in the production, by a composite, uninterrupted and continuous process of Transmission Rubber Belting, V-shaped Belts and Conveyor Belts is exigible to Central Excise Duty - is the meaningful question that arises for determination in this bunch of three writ petitions No. 1284 of 1982 ( M/s Punjab Rubber and Allied Industries & Ors. V/s. The Union of India and others ); No. 1460 of 1982 ( Universal Conveyor Belting Ltd. vUnion of India & Ors ); and No. 5739 of 1982 (The Northern India Rubber Mills V/s. Union of India & Ors. ).
(2.) The facts in C.W.P. No. 1284 of 1982 ( M/s. Punjab Rubber and Allied Industries & Ors. V/s. The Union of India and Ors. ) will provide an opposite backdrop to delineate the legal issue.
(3.) The petitioners are manufacturers and dealers of T.R. belting, V-shaped and conveyor belts. In order to manufacture these goods, the raw rubber, both natural and synthetic is compounded with various chemicals to make a master batch which is in the form of a sheet. This sheet is like a soft paste and is used in various forms in making a cushion compound, in impregnation or ply lamination. For the manufacture of the flat transmission belts the selected grade of cotton canvas is impregnated with the rubber paste in different consistency by Rolling the Paste in the fabric under pressure on a Calender Machine. The fabric thus impregnated with the rubber paste forms a ply inter-layer. The fabric thus treated-impregnated with the rubber paste is piled into layers to give a requisite thickness. While preparing this pile the thin sheet of rubber compound as described above is placed as inter-layers. The pile thus formed in required thickness is steam-heated in Hydraulic Press to heat cure. The piled curd sheets of laminated piles are cut to size for ultimate conversion into flat transmission belts.;