Classification of grey loomstate cotton fabric turns on condition at clearance, not industrial end-use, under the tariff.

Unprocessed cotton leno fabrics cleared in grey, loomstate condition, without coating, impregnation or further processing, were held classifiable under Tariff Item 52.05 as cotton fabrics not subjected to any process. Chapter 59 was read as covering textile fabrics and products that had undergone further processing after weaving, so Heading 59.09 did not apply merely because the fabric was used in the tea industry. The operative classification depended on the actual character and condition of the goods as manufactured and cleared, not on end-use alone.

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Issues: Whether the Leno fabrics manufactured by the assessee during 1987 and 1988 were classifiable under Tariff Item 52.05 as cotton fabrics not subjected to any process, or under Tariff Heading 59.09 as all other textile products and articles suitable for industrial use.

Analysis: The fabrics were woven cotton fabrics cleared in grey, unprocessed and in loomstate condition, without coating, impregnation or other further processing. Chapter 59 was found to cover textile fabrics and products which had undergone some further processing after weaving, and Heading 59.09 had to be read in the context of the preceding headings in that chapter. Mere use of the fabric in the tea industry did not by itself convert an unprocessed cotton fabric into an industrial textile product under Heading 59.09, especially when alternative uses were not excluded. The proper classification had to follow the actual character and condition of the goods as manufactured and cleared.

Conclusion: The goods were classifiable under Tariff Item 52.05 and not under Tariff Heading 59.09, in favour of the assessee.

Ratio Decidendi: An unprocessed cotton fabric cleared in grey loomstate condition remains classifiable according to its basic textile character, and mere end-use in industry does not justify classification under a heading for processed industrial textile products.

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