Per P.C. Jain :

Short question involved in these matters is whether friction cloth arising at the intermediate stage in the course of manufacture of TR belting, V Belts and Conveyor Belts is liable to duty or not. It is not disputed that the friction cloth is utilised captively for manufacture of the aforesaid types of belts.

1.1 Assistant Collector concerned has given a finding that the said friction cloth is not marketable on the basis of thorough market enquiry made by him as referred to in the order-in-original. The Revenue, however, challenged the said order of the Assistant Collector on the ground that under the new TH 59.05 describing the goods as "Rubberised textile fabric" specifically covers friction cloth inasmuch as it is a rubberised fabric as indicated from the process of manufacture and therefore, the question of marketability does not arise when the Tariff itself mentions the same as excisable product. This plea of the Revenue against the order-in-original was accepted by the lower appellate authority holding as follows in the bunch of appeals of the assessees:-

"I have considered the grounds of appeal of the Deptt. I find that the Deptt. is mainly placing relianc