Tariff classification of heavily sized cotton fabrics turns on permanent stiffness and actual impregnation or coating.

Bleached sheeting fabrics that were open-weave, heavily sized with starch, gum and inorganic fillers, and lost stiffness after hot-water treatment were held not to be impregnated or coated fabrics because the interstices between yarns remained open and the stiffness was not permanent. On that basis, the goods were classified under Heading 52.06 rather than Heading 59.01 of the Central Excise Tariff Act, 1985, following earlier Tribunal decisions on identical facts. The appeal was allowed in favour of the assessee.

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Issues: Whether the bleached sheeting fabrics, which were heavily sized and lost stiffness on treatment with hot water, were classifiable under Heading 52.06 of the Central Excise Tariff Act, 1985 or under Heading 59.01 of the Central Excise Tariff Act, 1985.

Analysis: The sample was found to be open weave cotton fabric, stiff and heavily sized with starch, gum and inorganic fillers, but it did not appear to be impregnated or coated because the interstices between the yarns were not closed. The stiffness was not permanent, as it disappeared on treatment with hot water. On identical facts, earlier Tribunal decisions had held that such fabric is not classifiable under Heading 59.01 and is more appropriately classifiable under Heading 52.06.

Conclusion: The goods were not classifiable under Heading 59.01 and were classifiable under Heading 52.06; the appeal was allowed in favour of the assessee.

Ratio Decidendi: Fabrics that do not have permanent stiffness and are not actually impregnated or coated are not classifiable under the tariff heading reserved for impregnated or coated fabrics.

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