COMMERCIAL TAXES OFFICER Vs. UNITED FELTS & CARPETS

JUDGEMENT

(1.) This sales tax revision petition by the petitioner-Revenue is directed against the order of the Rajasthan Tax Board dated 27/02/1991 passed in Appeal No. 122/90/ST/Jaipur. The matter relates to the assessment year 1984-85.

(2.) Brief facts are that the respondent-assessee is carrying on the business of manufacturing of non-woven felts, which are classified as non-made fabric under the Central Excise Tariff and the basic raw material which is being used for manufacturing the said fabric, is either polyester fibre and in some cases, cotton or mixture thereof and the fabric is produced by needle punching system, which is quite different from manufacturing the felt by process of hardening in the machine having an eccentric motion. As per the process, noticed by the lower authorities, the textile fibres are first opened in blow room section, converted into a lap, fed into a hopper (if required) or directly fed into a card. By the carding process, a web of required weight (per sq. mt.) is formed. While under the traditional process of fabric manufacture, the web so formed is converted into yarns by spinning and subsequently into fabric by weaving of the said yarns. For the direct conversion of the web into fabric form, the following process is adopted:--

(3.) It is the claim of the assessee that the product of the assessee was classified under the residuary item No. 68 under the Central Excise & Salt Act, which is in respect of the goods not classified but on the representation made by the assessee, the Central Excise Authorities revised the classification and classified the product in question under tariff item No. 22 w.e.f. 04/05/1984, except two products namely; F.F.B. 2 and F.F.B.W. 1. which were classified under tariff item No. 22 G and therefore, in the light of the same, it was the contention of the assessee that the fabric manufactured by the assessee is a Textile Fabric which is exempt from tax both under the State Act as well as under the Central Act.