Essential character test governs classification of PVC sheetings with mineral fibre backing under Chapter 39.

PVC sheetings backed with mineral fibre were treated as composite goods, and classification was determined by the material giving the product its essential character. Applying interpretative rule 3(b) and the explanatory notes, goods essentially made of artificial plastic remained classifiable under Chapter 39 even though they contained a backing or filler of another material. The backing did not change the essential character of the product, so the PVC sheetings fell under Tariff Heading 39.01/06 and not under Tariff Heading 68.01/16(1).

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Issues: Classification of PVC sheetings backed with mineral fibre, whether under Tariff Heading 68.01/16(1) or Tariff Heading 39.01/06.

Analysis: The goods were found to be composite goods consisting of a PVC sheet with mineral fibre backing. The relevant explanatory notes indicated that articles essentially of artificial plastic, even if containing a filler, fall under Chapter 39. The backing did not alter the essential character of the product, and under interpretative rule 3(b) classification had to be based on the material giving the goods their essential character. The product retained the essential character of PVC sheets and also corresponded to the explanatory notes for sheets of artificial plastic separated by another material.

Conclusion: The goods were correctly classifiable under Tariff Heading 39.01/06 and not under Tariff Heading 68.01/16(1), in favour of the Revenue.

Final Conclusion: The impugned appellate order was set aside and the original classification under Heading 39.01/06 was restored.

Ratio Decidendi: Composite goods are to be classified according to the material that imparts their essential character, and articles essentially of artificial plastic remain classifiable under Chapter 39 even if they contain another material as backing or filler.

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