Tarpaulin cloth classification turned on visible impregnation under the tariff test, leading to remand for fresh examination.

Tarpaulin cloth classification turned on whether the goods fell under Heading 52.07 or Heading 59.06 of the Central Excise Tariff, with the legal test focusing on whether waterproofing or impregnation produced a visible layer on the fabric surface under Chapter Note 5(a). The chemical examiner reported that the sample was base cotton fabric heavily impregnated with paraffin wax, earthy matter and inorganic compounds, with impregnation visible to the naked eye, but the appellate authority rejected that report on the basis of no visible layer formation. Because the expert evidence was not properly correlated with the governing tariff test, the classification question was remanded for de novo consideration and a fresh speaking order.

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Issues: Whether the goods described as tarpaulin cloth were classifiable under Heading No. 52.07 or under Heading No. 59.06 of the Central Excise Tariff, and whether the matter required remand for re-examination in the light of the chemical examiner's report and the Board's circular.

Analysis: The record contained a chemical examiner's opinion that the sample was base cotton fabric heavily impregnated with paraffin wax, earthy matter and inorganic compounds, with impregnation visible to the naked eye. The appellate authority had rejected that opinion on the basis that there was no visible layer formation. The Board's Circular No. 59/4/90 clarified that, for classification under Heading No. 59.06, the relevant consideration was whether the waterproofing or impregnation resulted in a visible layer on the surface of the fabric. In view of the unclear treatment of the expert report and the need to correlate the factual finding with the legal test under Chapter Note 5(a), the classification issue required fresh examination.

Conclusion: The matter was remanded for de novo consideration and fresh speaking order, and the Revenue's appeal succeeded to that extent.

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