Cotton fabrics classification under Chapter 52 upheld where heavy sizing did not create permanent stiffness.

Cotton fabrics heavily sized but lacking permanent stiffness were treated as classifiable under Chapter 52 of the Central Excise Tariff Act, 1985 rather than Chapter 59. The classification turned on the tariff description and the view that such fabrics were not comparable to buckram because they did not retain permanent stiffness. The Board's circular and the departmental understanding supported Heading 52.06, and a later appellate order for a subsequent period reinforced the same classification position. The assessee's contention for Chapter 52 was accepted.

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Issues: Whether cotton fabrics heavily sized but without permanent stiffness were classifiable under Chapter 52 or Chapter 59 of the Central Excise Tariff Act, 1985.

Analysis: The classification dispute was governed by the tariff description and the earlier Tribunal view that cotton fabrics heavily sized but lacking permanent stiffness were not comparable to buckram and therefore fell under Chapter 52. The Board's circular and the departmental understanding also supported classification under Heading 52.06. The later appellate order in the assessee's favour for the subsequent period further reinforced the same classification position.

Conclusion: The goods were classifiable under Chapter 52 and not under Chapter 59, and the assessee's contention was accepted.

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