Textile tariff classification turns on visible plastic coating and binding circulars; interlining cloth may fall under Chapters 50 to 55.

Textile fabric impregnated with plastic coating that could not be seen with the naked eye was held outside Heading 59.03, and Heading 59.01 was treated as limited to buckram and similar stiffened textile fabrics, not all stiffened fabrics. The departmental circular dated 13 June 1986 was treated as binding on excise authorities and required interlining cloth that did not fit those headings to be classified under Chapters 50 to 55 according to the predominance of textile material by weight. The classification order was set aside and the matter remanded for fresh assessment under the relevant tariff entries.

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Issues: (i) Whether the petitioner's product, being impregnated textile fabric with plastic coating not visible to the naked eye, could be classified under Heading 59.01 or Heading 59.03 of the Excise Tariff; (ii) Whether the departmental circular required classification under Chapters 50 to 55 according to predominance of textile material by weight.

Issue (i): Whether the petitioner's product, being impregnated textile fabric with plastic coating not visible to the naked eye, could be classified under Heading 59.01 or Heading 59.03 of the Excise Tariff.

Analysis: Heading 59.01 was held to cover buckram and similar stiffened textile fabrics, but not every stiffened fabric indiscriminately. The product in question was found to be a stiffened interlining fabric impregnated with plastic material. Note 2 to Chapter 59 excluded fabrics in which impregnation, coating or covering could not be seen with the naked eye from Heading 59.03. On that construction, the product did not fall within either Heading 59.01 or Heading 59.03.

Conclusion: The product was not classifiable under Heading 59.01 or Heading 59.03.

Issue (ii): Whether the departmental circular required classification under Chapters 50 to 55 according to predominance of textile material by weight.

Analysis: The circular of 13 June 1986 stated that where interlining cloth did not satisfy Heading 59.03 or the specification for buckram and similar stiffened textile fabrics under Heading 59.01, it would be classifiable under Chapters 50 to 55 depending on the predominance of textile material by weight. That circular was treated as binding on the excise authorities. The matter therefore required fresh assessment under the relevant headings in Chapters 50 to 55.

Conclusion: Classification had to be made under Chapters 50 to 55 by reference to predominance of material by weight.

Final Conclusion: The writ petition succeeded, the impugned classification order was set aside, and the matter was remanded for fresh assessment under the relevant tariff entries in Chapters 50 to 55.

Ratio Decidendi: A textile fabric impregnated or coated with plastic material, where such coating cannot be seen with the naked eye, is excluded from Heading 59.03, and a departmental circular governing tariff classification is binding on the excise authorities.

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