2001 (3) TMI 167 - AT - Central Excise

Summary

Issues:
Classification of fabrics processed with glue, starch, pigment under Heading 52.06 or 59.01 of the Central Excise Tariff Act, 1985.

Analysis:
The appeal involved a dispute regarding the classification of fabrics processed with glue, starch, and pigment under either Heading 52.06 or Heading 59.01 of the Central Excise Tariff Act, 1985. The appellant contended that the fabrics should be classified under Heading 52.06, which covers various processes applied to cotton fabrics, including dyeing and printing. The appellant argued that the fabrics were not of the type specified in Heading 59.01, which pertains to specific textile fabrics used for particular purposes like book covers or tracing cloth. The appellant relied on previous decisions where similar processed fabrics were classified under Heading 52.06. The Departmental Representative, on the other hand, argued that the fabrics fell under Heading 59.01 as they were coated with glue and starch and used as backing materials for coated abrasives, meeting the description under that heading.

Upon reviewing the submissions and the processes undertaken by the appellants, the Tribunal noted that the impugned product did not meet the criteria for classification under Heading 59.01 as textile fabric used for book covers or similar purposes. The Tribunal observed that the impugned fabrics were used as backing materials for coated abrasives and did not qualify as textile fabric for outer covers of books. The Tribunal found that there were no clear findings in the adjudication order classifying the product under Heading 59.01. Relying on precedents where similar processed fabrics were classified under Heading 52.06, the Tribunal set aside the impugned order and held that the fabrics in question should be classified under Heading 52.06 of the Central Excise Tariff Act, 1985.

In conclusion, the Tribunal resolved the issue by determining that the fabrics processed with glue, starch, and pigment should be classified under Heading 52.06 of the Central Excise Tariff Act, 1985, based on the purpose for which they were used and the absence of characteristics that would align them with the description under Heading 59.01.