Essential character test under Rule 2(a) failed where slitted fabrics still needed further manufacture before becoming typewriter ribbons.

Rule 2(a) applies only where incomplete or unfinished goods already possess the essential character of the finished article. Slitted cotton fabrics intended for typewriter ribbons still required glueing, stamping, inking and packing before becoming ribbons, and those essential processes were carried out after clearance at the recipient's factory. On that basis, the goods as cleared did not acquire the essential character of typewriter ribbons under Tariff Heading 96.12, so they were not classifiable as finished ribbons and the duty demand on that basis was said to fail.

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Issues: Whether slitted cotton fabrics supplied for manufacture of typewriter ribbons had, by reason of Rule 2(a), acquired the essential character of finished typewriter ribbons and were classifiable under Tariff Heading 96.12.

Analysis: The admitted manufacturing process showed that slitted cotton fabrics had to undergo further operations of glueing, stamping, inking and packing before they became typewriter ribbons. The evidence also indicated that these essential processes were carried out at the recipient's factory and not on the goods as cleared by the appellant. Rule 2(a) applies only where incomplete or unfinished goods already possess the essential character of the complete article. Mere slitted fabrics, being in the nature of raw material, did not by themselves acquire that essential character.

Conclusion: The goods cleared by the appellant were not typewriter ribbons and could not be subjected to duty on that basis. The classification adopted in the impugned order was incorrect and the demand failed.

Final Conclusion: The appeal succeeded and the duty demand was set aside because the goods had not yet acquired the essential character of the finished tariff item.

Ratio Decidendi: For Rule 2(a) to apply, incomplete or unfinished goods must already possess the essential character of the finished goods; where substantial further manufacturing is required, the goods remain unclassified as the finished article.

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