Cloth cut from seam on the counter (5)

I believe the answer is:

denim

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'cloth' is the definition.
(denim is a kind of cloth)

I cannot understand how the remainder of the clue works.

(Other definitions for denim that I've seen before include "Hard-wearing blue fabric" , "Material for casual trousers or jackets" , "Cotton twill fabric" , "Mined badly for a hard-wearing fabric" , "Coloured cotton twill" .)

I've seen this clue in The Independent.

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