AJIT KUMAR SENGUPTA, J.

( 1 ) THIS appeal is from the judgment and decree in Suit No. 195 of 1971. The major issue is whether the goods produced and named as Herefit sheets, thermoplastic sheets and celluloid sheets from cotton and silk fabrics for use in footwear amounted to manufacture to attract excise duty under entry 19 and 22 of the First Schedule to the Central Excises and Salt Tax Act, 1944. The facts of the case in brief are as under:

( 2 ) THE respondent Bata India Limited a manufacturer and dealer in footwear, for the purpose and in the course of- manufacture of footwear, uses cotton and artificial silk fabrics. These fabrics are purchased by the respondent and after being processed and/or chemically treated the fabrics are incorporated into upper portion of the shoes manufactured by the respondent. The fabrics undergo and/or are subject to the certain intermediary processes before final incorporation in the footwear. Some cotton fabrics are treated in the stiffner solution of urea formaldyhide resin compounded with various other non-plastic ingredients like filter, oil and resin and dissolved in water. The said solution is spread on the cotton fabrics. Some cotton fabr

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