Tariff classification of PVC-coated cotton fabric turns on the statutory definition and base-fabric predominance test.

Where a tariff entry expressly defines cotton fabrics to include fabrics coated or impregnated with artificial plastic materials, classification must be determined by that statutory definition and the predominance test applied with reference to the pre-existing base fabric. Rexine cloth made by coating PVC formulation on 100% cotton base fabric therefore remained classifiable as cotton fabric under Tariff Item 19-III. The argument that the goods ceased to be cotton fabrics because they were commercially known as rexine was rejected, and classification under Tariff Item 22(B) was not accepted on the facts found.

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Issues: Whether rexine cloth manufactured by coating PVC formulation on base cotton fabric is classifiable under Tariff Item 19-III of the Central Excise Tariff.

Analysis: Tariff Item 19 defined cotton fabrics to include fabrics impregnated, coated or laminated with preparations of artificial plastic materials, and its proviso required the predominance test to be applied with reference to the base fabric in such cases. The product was admittedly manufactured from 100% cotton base fabric purchased in the market and then coated with PVC formulation. The Court distinguished the precedent relating to simultaneous emergence of fabric and coating, and held that where a pre-existing base fabric exists, the statutory definition governs classification and the percentage of cotton is to be seen in relation to that base fabric rather than the finished product. The alternative plea that the goods fell outside cotton fabrics because they were commercially known as rexine was rejected, and the suggested classification under Tariff Item 22(B) was not accepted on the facts found.

Conclusion: Rexine cloth in question falls within Tariff Item 19-III and not outside the cotton fabric entry.

Final Conclusion: The appeals failed and the assessee's classification under Tariff Item 19-III stood undisturbed.

Ratio Decidendi: Where a tariff entry expressly defines coated or impregnated fabrics, the predominance test must be applied with reference to the pre-existing base fabric, and classification is governed by the statutory definition rather than trade parlance.

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