1. ' WAJIHUDDIN AHMED, J.---The petitioners maintain that they had exported some bleached and dyed/printed woven fabrics in the way of man-made garments, to be specific "table covers" and "cushion covers" and, in turn, claimed duty draw-back. The petitioners' duty draw-back claim for 100% polyester sets of "table covers" was rejected whereas their similar claim of 100% polyester "cushion covers" was allowed with corresponding issuance of rebate cheque. Voluminous correspondence seems to have ensued, the respondents, ultimately, requiring the petitioners to fill Form 'A' which the petitioners expressed their inability to do, since the petitioners are commercial and not industrial exporters. In the process, a period of over two years went by without redress and the petitioners were constrained to bring the first titled petition on 20-11-1993. While the second petition followed on 28-8-1994, the first stood admitted to regular hearing on 10-3-1994 upon the following observations being recorded:-- "Contention is that the items specifically referred to in the notification only enlarge the scope of the Notification SRO No,187(I)/1991 dated 10-3-1991 but the list given is not exhaustive. Further contention is that if bedwears, pillow covers and cushion covers can be included in the list of items mentioned in the notification, there is no reason why the table covers of the texture manufactured by the petitioner should be excluded."
2. ' Now in the successive applicable notifications, visualising the duty draw-back facility, the imported raw material, inter alia, consists of polyester yarn. The goods produced or manufactured are to be woven or knitted fabrics of man-made yarn or woven or knitted ready-made garments, the last including socks, pullovers, gloves, vests, loongis, handkerchiefs, bedwears, pillow-covers and cushion covers, falling in two categories and carrying varying duty drawbacks.
3. ' According to Mr. Farooq H. Naek, D.A.-G., "table covers" do not qualify either as "fabrics" or "garments" and, therefore, export rebate was rightly declined. With regard to the word "fabric" in the relevant notifications, the learned D.A.-G. Has drawn our attention to Chamber's 20th Century Dictionary, where the word is, amongst other things, defined to mean, "manufactured cloth".
4. Correspondingly, Mr. Farooq H. Naek, in the context of the words, "man-made" and "ready-made", occurring in the applicable notifications, has taken us through Section XI, Textile & Textile Articles, where the expression "made up" is defined, for the purposes of the section, in these word:-- "For the purposes of this section, the expression "made-up" means:
(a) Cut otherwise than into squares or rectangles;
(b) produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example certain dusters, towels, table cloths, scarf squares, blankets etc. ' Like reference by the learned D.A.-G. Is also made to Section XI Gen., (11) Chapters 56 to 63, page 714, in the Brussel's Explanatory Notes, where as well the concept of "made-up" articles is dealt with as hereinbelow:-- "Made-up articles.
5. ' Under Note 7 to this section, the expression "made-up" in Chapters 56 to 63 means:
(1) Merely cut, otherwise than into squares or rectangles, for example, dress patterns of textile material; articles with their edges pinked (e.g. Certain dusters) are also regarded as made up.
(2) Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working. Goods of this kind include products knitted or crocrheted directly to shape and certain dusters, towels, table cloths, scarf squares, blankets, etc., with threads alongwith the warp left unwoven or the weft edges cut to form a fringe. Such articles may have been woven separately on the loom, but may also have been simply cut from lengths of fabric which have bands of unwoven threads (generally warp threads) at regular intervals. These lengths of fabric, from which ready-made articles of the types described above may be obtained by simply cutting the dividing threads, are also considered as 'made-up articles' ." (Emphasis added)
6. ' In view of the foregoing, contention of Mr. Farooq H. Naek, D.A.-G. Is that "table covers", by any stretch of reasoning, cannot fall within the concept of "fabric" (meaning manufactured cloth) and have to be dealt with as articles. Ancillary argument is that "table covers" do not qualify even as "garments" because, in the first place, they are not such and secondly, even the extended meanings in the notifications do not stipulate to "include" the same.
7. ' Mr. Ahmed H. Shah, the learned counsel for the petitioners, on his part, does not agree that "table covers" do not implicitly figure in the applicable phraseology of the notification viz. "woven or knitted fabrics of man-made yarn which are either dyed or printed". Alternatively, the learned counsel contends that if "table covers" do not fall within the above reproduced item, such would by covered under other sub-headings namely, "woven or knitted ready-made garments including socks, pullovers, gloves, vests, loongis, handkerchiefs, bedwears, pillow covers, cushion covers", carrying different duty draw-back depending upon being "dyed or printed" or not so. He elaborates his last contention by urging that the word "including" under quote is merely illustrative and not exhaustive, to be interpreted accordingly.
8. ' The learned D.A.-G. May be right when he contends, that "table covers" should not be construed to be included in the concept of "fabric" because such may not be "manufactured cloth" simpliciter.
9. This throws up the alternative pleaded by the petitioners namely, that the article should be deemed to be included in the category of "garments". The word "garments", in turn, is defined in the same dictionary, as above, to mean, "any article of clothing" whereas, "clothing" signifies "clothes, garments: covering". This too may involve "covering" for living or other beings. However, within the notifications an expanded use seems to have been identified. Thus included amongst garments are "handkerchiefs, bedwears, pillow covers and cushion covers", which stricto senso may not be garments at all and yet the concept of garments is shown to have been enlarged to embrace the same, giving rise to the question as to why "table cloths" fitting similar connotations may not equally be covered. The learned counsel for the petitioners, in support, has pointed out that per letter, dated 26-2-1991, the Second Secretary to the Board directed the Collectorate to note that in the applicable notification "cushion covers should be deemed to be covered under the heading pillow covers " This would imply that through mere process of interpretation an item which ex facie may not have been included was deemed to be included amongst "garments" and no amending notification was found requisite, signifying that the notifications were to be liberally construed.
10. ' Next, it has been argued that in the cognate notification "table covers" manufactured from cotton have been allowed the facility of Export rebate. It, therefore, may not be sound logic to exclude a similar item manifestly produced from imported polyester, cotton, as it is, being an indigenous product. Similarly, we note that if mere "manufactured cloth" is found eligible to duty drawback, it may hardly be reasonable to exclude a manufactured product from the same cloth.
11. For all the aforesaid reasons, we are constrained to conclude that the said notifications are calculated to expand and encourage exports and have to be liberally construed in the larger public interest, an aspect which does not seem to have merited consideration at the departmental level. Indeed, the department has hardly cared to pass any orders as such in the matter.
12. ' In such circumstances, learned counsel agree that the matter can be referred back to the Deputy Collector (Exports) Customs for him to re-examine the whole issue and apply the law in consonance with time-honoured principles.
13. ' The petitions are allowed in terms as above, but with no order as to costs.