Tariff classification of cut tubular HDPE fabric turns on essential character; unstitched lengths remain woven fabrics, not made up articles.

For tariff classification, an unfinished textile product is treated as the finished article only if, as presented, it has the essential character of that article or qualifies as a blank. Mere cutting of tubular HDPE fabric to length, without stitching or readiness for direct use as sacks, does not make it a made up textile article under heading 63.01. Section Note 5 of Section XI excludes fabrics merely cut otherwise than into squares or rectangles from automatic treatment as made up articles, but does not convert every such cut fabric into one. The goods therefore fall to be classified as woven fabrics under heading 54.08.

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Issues: Whether cut lengths of hollow tubular HDPE fabrics, intended to be stitched into sacks, were classifiable as made up textile articles under heading 63.01 or as woven fabrics under heading 54.08.

Analysis: Rule 2(a) of the Rules for the Interpretation of the Schedule to the Central Excise Tariff Act, 1985 applies only where the incomplete or unfinished article, as presented, has the essential character of the finished article or qualifies as a blank. Section Note 5 of Section XI excludes from the category of made up articles fabrics merely cut otherwise than into squares or rectangles, but the note does not make every such cut fabric a made up article. The goods here were tubular fabrics cut to length, but they were not stitched, were not ready for direct use as sacks, and did not possess the essential character of finished sacks. They were therefore not blanks or made up textile articles within heading 63.01.

Conclusion: The goods were not classifiable under heading 63.01 and were correctly classifiable under heading 54.08; the appeal succeeded.

Final Conclusion: The majority held that unstitched cut lengths of tubular HDPE fabric do not answer the description of made up textile articles and fall for classification as woven fabrics, resulting in relief to the assessee.

Ratio Decidendi: For tariff classification, an unfinished textile article can be placed under the heading for the finished article only if, as presented, it has the essential character of that article; mere cutting to length without completion or stitching does not make tubular woven fabric a made up article.

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