Classification of Jacquered terry-towelling fabrics made out of processed yarn under sub-heading No. 5802.11 or 5802.12 - Central Excise - 58/1/91-CX.1

Classification of Jacquered terry-towelling fabrics made out of processed yarn under sub-heading No. 5802.11 or 5802.12 F. No. 58/1/91-CX.1 Dated 29-4-1991 Government of India Central Board of Excise Customs New Delhi Subject : Classification of Jacquered terry-towelling fabrics made out of processed yarn under sub-heading No. 5802.11 or 5802.12. A doubt has been raised regarding the classification of Terry Towelling Fabrics manufactured out of bleached/dyed/mercerised yarn whether under sub-heading 5802.11 or under sub-heading 5802.12 of the Central Excise Tariff. The sub-heading 5802.11 refers to Terry Towelling Fabrics not subjected to any process and sub-heading 8502.12 refers to Terry Towelling Fabrics subjected to the process of bleaching, dyeing etc. 2. A manufacturer is reportedly subjecting a portion of yarn to the manufacturing process of bleaching/dyeing/mercerising and thereafter subjects it to winding/wrapping/ sizing and weaving process for the manufacture of jacquered terry-towelling fabrics with patterns/designs of single colour or multi-colours made during the weaving process. The assessee has claimed that such Jacquered terry towelling fabrics should be classifiable as unprocessed terry towelling fabrics under Chapter sub-heading No. 5802.11. However, the field formations, taking into account HSN sub-heading note 1(f) and (g), to Section XI of CET have taken the stand that such terry towelling fabrics should be classified as processed fabrics under sub-heading 5802.12 of the Central Excise Tariff. This issue was discussed in the North Zone Tariff-cum-General Conference at Jaipur on 8th/9th February, 1991. The conference was of the opinion that such fabrics made from processed yarn may be treated as processed fabrics. 3. This issue was further examined in the Board. As per Chapter Note 7 to Chapter 58 of Central Excise Tariff, bleaching, dyeing etc. amount to manufacture in relation to the products of sub-heading No. 5802.12. Unless the fabric is subjected to these process, it may not merit classification in that sub-heading. So, going strictly by the Central Excise Tariff, if the terry towelling fabrics is processed after weaving, then only it would fall under sub-heading 5802.12. Otherwise, it would fall under sub-heading 5802.11. In this instant case, the jacquered terry towelling fabrics are manufactured from processed yarn and after the fabric comes into existance, no processing activity is undertaken. The reliance placed on the sub-heading notes 1(f) and (g) of section XI of HSN is not correct since these sub-heading notes of HSN have not been incorporated in our Central Excise Tariff. The Central Excise Tariff sub-headings 5802.11 and 5802.12 are quite specific. 4. Taking all these into account, it has been decided by the Board that such jacquered terry towelling fabrics, manufactured out of bleached/dyed/mercerised yarn and not subject to any processing in the fabric stage, would be classifiable in Chapter sub-heading 5802.11 of the Central Excise Tariff. 5. This may be brought to the notice of the Trade and the field formations.