Finished textile articles ready for use, even by simple thread separation, belong in made up articles classification, not towelling fabric.

Textile articles produced in finished form and ready for use, or requiring only separation by cutting dividing threads, fall within Chapter 63 as made up articles rather than as continuous towelling fabric. The product had a predetermined size and shape, a cross border and dividing threads separating individual towels; these features showed it was already usable as towels without further sewing or working. Hemming did not change the classification. The correct tariff entry was Heading 6301, not Heading 58.02, so the product was treated as a made up towel article for excise purposes.

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Issues: Whether the respondent's product was classifiable as terry towelling fabrics under Heading 58.02 or as terry towels made up articles under Heading 6301.

Analysis: The product had a predetermined size and shape, a cross border, and a dividing thread separating individual towels. Note 5 to Section XI treated articles produced in finished state and ready for use, or merely needing separation by cutting dividing threads, as made up textile articles under Chapter 63. The presence of hemming did not alter the position, because the towels were already usable as towels without further sewing or working. On these facts, the product was not treated as continuous towelling fabric but as towels ready for use after separation by dividing threads.

Conclusion: The classification under Heading 6301 was upheld and not Heading 58.02.

Final Conclusion: The departmental challenge to the impugned classification failed and the product was treated as a made up towel article for excise purposes.

Ratio Decidendi: Textile articles produced in finished form and ready for use, or requiring only separation by cutting dividing threads, fall within the made up articles entry and not under towelling fabric classification.

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