Textile classification dispute on processed knitted pile fabric referred to Larger Bench over Section XI notes and chapter placement.

Processed knitted pile fabric received in running length and subjected to washing, dyeing, bleaching, hydro-extraction, tumble dyeing and drying raised a classification dispute between Chapter 63 as a made-up textile article and Chapter 60 as processed fabric. The question turned on the scope of Note 5(b) and Note 5(f) of Section XI, with conflicting Tribunal views on their application to the processed material. Because of that divergence, the matter was referred to a Larger Bench for consideration.

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Issues: Whether the processed knitted pile fabric received in running length and subjected to washing, dyeing, bleaching, hydro-extraction, tumble dyeing and drying was classifiable under Chapter 63 as a made-up textile article or under Chapter 60 as processed fabric.

Outcome: Owing to conflicting Tribunal views on the scope of Note 5(b) and Note 5(f) of Section XI, the matter was referred to the Larger Bench for consideration.

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