Essential character test for rexine classifies composite goods by intended use, not by plastic predominance.

PVC leather cloth (rexine) was classifiable by reference to its essential character and intended use as leather cloth simulating leather, not merely by the predominance of plastic by weight or volume. The Tribunal held that the plastic coating was essential to the product, while the textile backing did not alter that character. On that basis, the goods fell under Heading 59.03 and not Heading 39.21, and the assessee's classification was accepted.

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Issues: Whether PVC leather cloth (rexine) was classifiable under Heading 59.03 or Heading 39.21 of the Central Excise Tariff Act, 1985.

Analysis: The goods were identical to the product earlier considered by the Tribunal, where it was held that the mere predominance of plastic by weight or volume did not determine classification. The relevant consideration was the purpose for which the material was used and its character as leather cloth meant to simulate leather, in which the plastic coating was essential. On that basis, the textile backing did not displace the classification claimed by the appellant.

Conclusion: The goods were correctly classifiable under Heading 59.03 and not under Heading 39.21. The finding was in favour of the assessee.

Final Conclusion: The appeals succeeded and the classification adopted by the assessee was accepted.

Ratio Decidendi: For composite goods like rexine, classification depends on the product's essential character and intended use, and not merely on the predominance of one constituent by weight or volume.

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