K.L. Rekhi, Member (T)

1. The point of dispute that falls for decision in this case relates to tariff classification and the rate of central excise duty applicable to laminated jute bags. The lower authorities have held that laminated jute bags fell under the residuary item No. 68 of the Central Excise Tariff. The appellants have urged that these goods be classified under item 22A relating to jute manufactures. The dispute relates to the period from 1-3-1975 to 5-6-1979. With effect from 6-6-1979, laminated jute bags falling under item No. 68 of the Tariff became fully exempt from duty under notification No. 204/79-CE, dated 6-6-1979.

2. The subject laminated jute bags were manufactured out of jute fabrics laminated with paper, the two being bonded together with the help of bitumen. In the laminated condition, the jute content predominated. In holding that the laminated jute bags fell under item No. 68 of the Tariff, the lower authorities have relied on the Calcutta High Court judgments reported at A.I.R. 1970 Cal. 491 -Dalhousie Jute Company Limited v. Union of India (judgment by single judge) and the judgment of the Division Bench dated 14-8-1975 in the same case when the matt