Tariff classification turns on ground fabric and pile surface requirements for carpet products under the textile note.

Tariff classification depended on whether the carpet products had a ground fabric together with a pile or looped surface, because Sub-heading Note 2(B)(ii) of Section XI applied only to goods meeting that factual condition. On the facts found, the products lacked that essential combination, so the note could not be used to exclude the ground fabric or justify classification under the higher-duty entry. The classification under sub-heading 5703.20 was therefore maintained and the competing claim for sub-heading 5703.90 failed.

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Issues: Whether the respondent's carpet products were classifiable under sub-heading 5703.20 or sub-heading 5703.90 of the First Schedule to the Central Excise Tariff Act, 1985, and whether Sub-heading Note 2(B)(ii) of Section XI applied.

Analysis: The decisive factor was whether the goods consisted of a ground fabric together with a pile or looped surface, because only then would the note exclude the ground fabric from consideration. On the facts found, the goods did not have the essential combination of a ground fabric and a pile or looped surface. In the absence of that condition, the tariff note could not be invoked to classify the goods under the higher-duty entry. The Commissioner (Appeals) had therefore correctly accepted the respondents' classification.

Conclusion: The classification under sub-heading 5703.20 was upheld and the Revenue's contention for sub-heading 5703.90 failed.

Final Conclusion: The impugned order was sustained and the Revenue's appeal was rejected.

Ratio Decidendi: A tariff note applicable only to textile products consisting of a ground fabric and a pile or looped surface cannot be used unless that factual condition is established; in its absence, the claimed tariff classification fails.

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