S. Venkatesan, Sr. Vice-President

1. This is an appeal from Messrs Peico Electronics Electricals Ltd., (hereinafter called the appellants) against the Order-in-Revision dated 24-8-82 passed by the Collector of Central Excise and Customs, Pune. The matter arises from the Order No. V (Ex) 11-39/77/69 dated the 31st December, 1980, passed by the Assistant Collector of Central Excise, Pune II Division. It relates to a material called "spider cloth". The appellants had been served with notice to show cause why this spider cloth should not be assessed to duty under sub-item III of Item 19 of the Central Excise Tariff Schedule. The description of this sub-item reads as follows:-

"Cotton fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials."

After considering the reply given by the appellants, the Assistant Collector in his order under reference observed that the spider cloth was obtained at an intermediate stage and was not marketable nor marketed and therefore was not excisable. He accordingly ruled out the classification of the fabric under either Item 19 or Item 68 of the Central Excise Tariff Schedule, and vac