TaxTMI 
TaxTMI 
2001 (4) TMI 338
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....the present appeal. 2. The dispute relates to classification of "Stiffened Fabrics". The facts in brief, are that the respondents are engaged in the processing of cotton fabrics of their own manufacture as well as cotton fabrics received from outside parties, the duty liability on which was being discharged under Chapter 52. On checking of such processed fabrics, it was found that due to coating of cotton fabrics with gum and amylaceous substance imparted stiffness to the fabrics and as such, possessed essential character of being classified under Heading No. 59.01. The representative sample of the said fabrics was drawn and the report of the Chemical Examiner was to the following effect :- "The sample is a cut-piece of white som....
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....n the aforesaid facts and circumstances of the case, we also notice that the adjudicating authority has not considered the stand taken in the case of Sunita Textiles Ltd. which was put forth before it by the appellant herein and has also not whispered a word about it in the impugned order. We feel that it is appropriate for the adjudicating authority to deal with the plea taken before it. In the aforesaid facts and circumstances of the case, we are of view that the matter is fit for remand and we order accordingly." During de novo proceedings, the Commissioner observed that the report of Chemical Examiner is insufficient and not specific whether the nature and extent of coating specified the condition laid down in the judgment in Sunita ....
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....o be applicable directly to the facts of the present case considering the nature of the processed fabrics. The learned SDR submits that nothing prevented the adjudicating authority to ask the Chemical Examiner to give a clear and specific report at the de novo adjudication stage. When there was no doubt expressed about the nature of coating by the Chemical Examiner and that the Chemical Examiner had reported that the sample had a characteristics of stiffened fabrics it was not proper on the part of the adjudicating authority to hold that the goods fall outside the heading No. 59.01. He, therefore, prays for setting aside the Order or remand the same for fresh adjudication by the Commissioner. 4. Shri S.K. Roy Choudhury, learned Advo....
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.... Thus it is seen that for holding a fabric as stiffened fabrics it must satisfy the condition that the interstics between the yarns shall be completely filled with impregnating compound throughout the thickness of the material. Moreover, such fabrics should be heavily sized which means, that the compound when applied to yarn or fabric should form a more or less continuous solid film around the yarn and individual fibres. In the instant case, the Chemical Examiner has nowhere indicated such characteristics to the fabrics examined by him. His observation as regards the stiffness of the fabric is that the same is "somewhat stiff" and "has the characteristics of stiffened fabrics", and as rightly observed by the Commissioner, the above descr....