Textile fabric classification under Heading 59.03 prevails where P.U. foam coating serves only as cushioning support.

Man-made and cotton fabrics coated with P.U. foam were held to remain textile fabrics for tariff classification because their essential character was that of fabric and the foam functioned only as cushioning on the underside. Market understanding, actual use for shoe uppers, chapter notes to Chapters 59 and 39, explanatory notes to Heading 59.03, and the interpretative rule for competing headings supported classification under Heading 59.03 rather than Heading 39.21. The Chemical Examiner's report was not treated as determinative, and the assessee's claimed sub-headings under Heading 59.03 were accepted.

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Issues: Whether man-made fabrics and cotton fabrics coated with P.U. foam were classifiable under Heading 59.03 of the Central Excise Tariff Act, 1985 or under Heading 39.21.

Analysis: The goods were found to be textile fabrics whose functional character remained that of fabric, as they were used for shoe uppers and the P.U. foam served only as a cushion on the underside. The Court relied on the predominance of the textile component, the manner in which the goods were known and used in the market, the chapter notes to Chapter 59 and Chapter 39, the explanatory notes to Heading 59.03, the interpretative rule favouring the later heading when competing classifications remained equally applicable, and the supporting departmental circular dealing with similar coated fabric products. The Chemical Examiner's report was held not to be determinative of tariff classification.

Conclusion: The goods were correctly classifiable under Heading 59.03 in the respective sub-headings claimed by the assessee and not under Heading 39.21.

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