Classification of coated cotton fabric for book binding favoured heading 5901.10, defeating the claimed excise exemption.

Processed cotton fabric coated on one side with starch, gummy matter and inorganic siliceous material was held to fall under heading 5901.10, because heading 59.01 covers textile fabrics coated with gum or amylaceous substances of a kind used for book covers and similar binding uses. The phrase "of a kind used" was treated as illustrative, so actual use by book binders as side patti supported classification under that heading. As the product was not classifiable under heading 5206.31, exemption claimed under Notification No. 142/86-C.E. on that basis was not available.

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Issues: Whether processed cotton fabric coated on one side with starch, gummy matter and inorganic siliceous material, used by book binders as side patti, was classifiable under sub-heading 5206.31 of the Excise Tariff or under sub-heading 5901.10, and whether it was entitled to exemption under Notification No. 142/86-C.E. dated 01.03.1986.

Analysis: Heading 52.06 covered cotton fabrics subjected to specified processes, but did not encompass fabrics treated with starch, gummy matter and inorganic siliceous material. Heading 59.01 covered textile fabrics coated with gum or amylaceous substances of a kind used for the outer covers of books or the like. The words "of a kind used" were treated as illustrative, not restrictive, and the item's use by book binders, even as side patti, brought it within the scope of the heading. The product also matched the description of book binding cloth in commercial usage and the HSN notes. Since the classification under heading 59.01 was proper, the claimed classification under heading 52.06 and the exemption based on that classification could not be accepted.

Conclusion: The product was correctly classified under sub-heading 5901.10 and not under sub-heading 5206.31. The assessee was not entitled to the claimed exemption, and the classification adopted by the Revenue was upheld.

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