Classification of heavily sized cotton fabrics turned on essential character, with Chapter 52 applying absent permanent stiffness.

Heavily sized cotton fabrics that do not acquire permanent stiffness retain their essential character as cotton fabrics and are not classified under Chapter 59 merely because of sizing. The Tribunal followed its earlier decision in the assessee's own case and supporting precedent, applying the principle that classification depends on the product's true character rather than treatment alone. On that basis, the goods were held classifiable under Chapter 52, the contrary classification was set aside, and the assessee succeeded.

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Issues: Whether cotton fabrics heavily sized but not having permanent stiffness were classifiable under Chapter heading 52 of the Central Excise Tariff or under Chapter 59.

Analysis: The Tribunal followed its earlier decision in the assessee's own case and the supporting precedent relied on therein. On that basis, it accepted the assessee's contention that the product remained cotton fabrics and did not acquire the character required for classification under Chapter 59 merely because it was heavily sized. The classification was therefore determined by the product's essential character rather than by the size treatment alone.

Conclusion: The product was classifiable under Chapter 52, not Chapter 59, and the assessee succeeded.

Final Conclusion: The impugned classification was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Cotton fabrics that are heavily sized but do not acquire permanent stiffness retain classification under Chapter 52 and are not classifiable under Chapter 59 solely on account of sizing.

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