Permanent stiffness test governs classification of stiffened fabrics, with merely treated textiles falling outside the stiffened-fabrics heading.

Processed cotton and man-made fabrics coated with starch, chalk or similar substances were classifiable under Heading 52.06, because Heading 59.01 applies only where the fabrics acquire permanent stiffness. The Tribunal followed its earlier classification principle that mere stiffening is insufficient for Chapter 59 treatment and relied on contemporaneous CBEC circulars supporting classification under the textile heading corresponding to bleached processed fabrics. On that basis, the assessee's declared classification under Heading 52.06 was upheld and Heading 59.01 was rejected.

---

---

Issues: Whether the processed cotton and man-made fabrics, after application of starch, chalk and similar substances, were correctly classifiable under Heading 52.06 of the Central Excise Tariff Act, 1985 or under Heading 59.01 thereof as stiffened fabrics.

Analysis: The decisive consideration was whether the fabrics had acquired a permanent stiffness so as to fall within Chapter 59. The Tribunal followed its earlier view that stiffened fabrics attract Heading 59 only when the stiffness is permanent. It also relied upon contemporaneous Central Board of Excise and Customs circulars under the erstwhile tariff, which supported classification of such fabrics under the chapter corresponding to Heading 52.06 rather than Heading 59.01. The earlier decision was applied as the governing classification principle for the present goods.

Conclusion: The goods were held to be correctly classifiable under Heading 52.06 and not under Heading 59.01, and the assessee's classification was upheld.

Ratio Decidendi: Fabrics that are merely stiffened and do not acquire permanent stiffness are classifiable under the textile heading corresponding to bleached processed fabrics and not under the heading for stiffened fabrics.

---