Classification of Tarpulin/processed water-proofed canvas cloth - clarification - Regarding - Central Excise - 6/91-CX.1

Classification of Tarpulin/processed water-proofed canvas cloth - clarification - Regarding Circular No. 6/91-CX.1 Dated 11-4-1991 [From F. No. 59/4/90-CX.1] Government of India Central Board of Excise Customs New Delhi Subject - Classification of Tarpulin/processed water-proofed canvas cloth - clarification - Regarding. A doubt has been raised regarding the classification of Tarpaulin/processed water-proofed canvas cloth whether under Central Excise Tariff Chapter 59 or in Chapter 52. 2. The process of manufacture of the said fabrics is reported as under : - "This process is known as chemical proofing process. In this, first grey fabrics are washed and dyed in jigger and then passed through Mangle containing water-proofing solution. The water-proofing solution here, consists of wax, waxol-PA, Aluminium Sterate, Maize Starch, Gungum etc. in which Waxsol-PA, in the form of paste sets evenly in the pores of fabrics. Thereafter, the fabrics are passed through a stanter having 24 cylinders and heating of stanter is done with the help of LPG. This stantering process facilitates evenly settling/filling of pores of the fabrics in an also drying of fabrics. The fabrics are again passed through the mangle containing a solution of Aluminium and Lead Acetate known as acetating solution and the process is known as Acetating process. This process gives final finishing to the convers cloth which is then passed through the heated stanter to make finished goods." 3. The matter was referred to Chief Chemist, CRCL, New Delhi, for ascertaining his views regarding the classification of the subject goods. The Chief Chemist after examining the samples has opined that wax-coated canvas and Tarpaulin fabrics would be classifiable in Chapter 59. Going by the criterion of visible layer formation, he has further opined that these wax-coated canvas cloth can only be classified in sub-heading 59.09 of the Central Excise Tariff as there was no visible formation of layer. As regards Tarpaulin fabrics, the Chief Chemist has opined that the said Tarpaulin fabric can be classifiable under 59.06 of the Central Excise Tariff as there was a visible layer formation on the said fabric. 4. The issue has been further examined in the Board. Water-proofing is one of the processes specifically mentioned in Chapter 52 whereas Chapter 59 refers to impregnated/coated fabrics. The possible sub-heading for classifying the said fabric in Chapter 69 is 59.06 i.e., textile fabrics, otherwise impregnated/coated or covered. For classifying a product as otherwise impregnated/coated fabrics falling under sub-heading 59.06, there should be a visible formation of layer on the surface of the fabrics as per Note 4 to 59. If the manufacturing process of water-proofing is such that there is formation of a visible layer on the surface of the fabric, then the classification will be in sub-heading 59.06 despite the mention of water-proofing as one of the processes in Chapter 52. This view gets support from the interpretative rules that if goods merit consideration for classification equally in more than one headings, such goods should be classified under the heading which occurs last in the numerical order. However, if there is no visible layer formation, then the said wax proofed/Tarpaulin cloth should be classified in Chapter 52 of the Central Excise Tariff as water proofed cloth, provided the base fabrics are cotton fabric. While determining whether the deposite on the surface is a visible layer or not, a 'layer' should be distinguished from mere presence of residues in uneven patches. 5. This may be brought to the notice of the field formations and trade interest.