Durable stiffness required for stiffened fabric classification; temporary stiffness on washing does not justify Heading 59.01.

Fabric classification under Heading 59.01 required durable or permanent stiffness, not merely temporary stiffness. Because the record did not show coating with gum or amylaceous substances and indicated that the fabric lost stiffness on washing, the goods could not be treated as stiffened fabric under Heading 59.01. They were therefore classifiable as cotton fabric under Heading 52.06, and the demand and penalty founded on Heading 59.01 could not stand.

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Issues: (i) whether the fabric manufactured by the assessee was classifiable as stiffened fabric under Heading 59.01 or as cotton fabric under Heading 52.06; (ii) whether absence of permanent or durable stiffness precluded classification under Heading 59.01.

Issue (i): whether the fabric manufactured by the assessee was classifiable as stiffened fabric under Heading 59.01 or as cotton fabric under Heading 52.06.

Analysis: The disputed demand proceeded on the footing that the goods were identical to those earlier considered in the tribunal proceedings. The earlier decision had held that, in the absence of evidence of coating with gum or amylaceous substances and in light of the nature of stiffness shown, the fabric could not be brought under Heading 59.01. That reasoning applied equally to the goods covered by the present notice.

Conclusion: The goods were not classifiable under Heading 59.01 and were liable to be classified under Heading 52.06.

Issue (ii): whether absence of permanent or durable stiffness precluded classification under Heading 59.01.

Analysis: Classification under Heading 59.01 required stiffness of a durable character. The record did not establish that the stiffness survived washing, and the material relied upon by the assessee indicated loss of stiffness on washing. Temporary stiffness was insufficient to attract the heading reserved for stiffened fabrics.

Conclusion: In the absence of permanent stiffness, classification under Heading 59.01 was not sustainable.

Final Conclusion: The assessee succeeded in establishing the correct tariff classification, and the demand and penalty based on Heading 59.01 could not stand.

Ratio Decidendi: For classification as stiffened fabric under Heading 59.01, the stiffness must be durable or permanent; temporary stiffness that disappears on washing does not justify that classification.

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