Technical tariff classification prevails over invoice description: woven goods with warp and weft fall under Chapter 5807, not lace.

Goods woven in running length with distinct warp and weft were held not to be "lace" under Chapter Heading 5804 merely because they resembled lace or were described that way in invoices; technical tariff classification prevailed over commercial nomenclature. On that basis, the articles were classified under Chapter Heading 5807 as labels and similar articles. The impugned order was set aside, and duty liability was remanded for fresh adjudication after hearing the appellant, since no alternative classification had been proposed by the revenue.

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Issues: Whether the goods described as lace, tape, bale and than were classifiable under Chapter Heading 5804 as lace, or under Chapter Heading 5807 as labels and similar articles, and the consequential duty liability.

Analysis: The goods were found to be produced in running length and manufactured by weaving with distinct warp and weft threads. The explanatory note to Chapter 5804 states that true lace does not have distinct warp and weft and is not to be confused with products of similar appearance made on a pre-existing ground. Since the subject goods were woven articles with warp and weft, mere commercial description as lace in invoices could not control technical classification under the tariff. On the facts, Chapter Heading 5804 was ruled out and Chapter Heading 5807 was found to be the appropriate heading. As the revenue had not proposed any other alternative classification, the matter required fresh adjudication on duty.

Conclusion: The goods were held classifiable under Chapter Heading 5807 and not under Chapter Heading 5804. The impugned order was set aside and the matter was remanded for fresh adjudication of duty liability after hearing the appellant.

Final Conclusion: The classification dispute was decided in favour of the appellant, but the question of duty liability was left for reconsideration by the original adjudicating authority.

Ratio Decidendi: Where goods are woven with distinct warp and weft, they cannot be classified as lace under Chapter 5804 merely because they resemble or are described as lace; technical tariff classification prevails over commercial nomenclature.

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