THE COLLECTOR OF CENTRAL EXCISE, BARODA vs M/S. THE GAEKWAR MILLS LIMITED

The Supreme Court addressed the classification of fabric under the Central Excise Tariff Schedule, specifically Item No. 19 (Cotton Fabrics) and Item No. 22 (Man-Made Fabrics). The Court held that the fabric in question, composed of 33% polyester, 32% viscose, and 35% cotton, does not meet the criteria for classification under Item No. 19 due to the predominance of non-cellulosic fibres. Consequently, the Court upheld the CEGAT's decision that the fabric falls under Item No. 22, affirming the classification as man-made fabric under the Central Excise Act, 1944.