UNION OF INDIA AND ORS. vs GUJARAT WOOLLEN FELT MILLS

The Supreme Court upheld the Gujarat High Court's decision that non-woven felts manufactured from woollen fibres do not qualify as 'woollen fabrics' under Entry 21 of Schedule I to the Central Excises and Salt Act, 1944. The Court emphasized that the interpretation of statutory terms should rely on their popular meaning rather than technical definitions, affirming that 'fabric' refers to woven material. Consequently, the excise duty levied on the respondent was deemed improper, and the refund was mandated.