C. Ex. - Classification of cotton fabrics one side of which is pasted with layer of synthetic adhesive and covered with paper - Matter regarding - Central Excise - 24/90-CX.1

C. Ex. - Classification of cotton fabrics one side of which is pasted with layer of synthetic adhesive and covered with paper - Matter regarding Circular No. 24/90-CX.1 Dated 23-11-1990 [From F. No. 59/3/90-CX.1] Subject : C. Ex. - Classification of cotton fabrics one side of which is pasted with layer of synthetic adhesive and covered with paper - Matter regarding. A doubt has been raised regarding classification of pressure sensitive adhesive coated cotton cloth, whether under chapter heading 5901 or 5906.90 of the Central Excise Tariff Act, 1985. The process of manufacture of the said product is as below : "Silicon coated' paper is fed from one end of the plant. The paper during the process passed through calender rolls which transferred the prepared adhesive placed in a tray on to the paper. The adhesive coated paper then passed through drier and then finally through another set of calender rolls where it combined with the fabrics which was being supplied with another end of the plant. The product so obtained was coated in the roll form and was used as one of the raw materials in the manufacture of shoe-uppers". 2. The said issue was discussed in the 2nd North Zone Tariff Conference. The conference took note of the description against Headings 59.06 and 59.09 and observed that sub-heading No. 59.06 related to textile fabrics whereas the product under consideration was a textile product a combination of paper, adhesive and fabrics which was no longer a fabric and was not usable as fabric wearable, furnishing fabrics etc. On the other hand, it observed that the product was for industrial use and was being used as one of the raw materials for shoe-uppers. Therefore, the conference was of the view that the most appropriate classification would appear to be under Heading No. 5909.00 because the examples given under this tariff entry fitted in exactly for the goods under consideration. 3. The classification of the said product has been further examined in the Board, with reference to Ch. 48, Ch. 59 and Ch. 64. The product "pressure sensitive adhesive coated cotton fabrics" may not merit classification under chapter 48 of CET. Though chapter 48 covers impregnated paper products, the product under reference may not be covered under that chapter. In the instant case, the fabric provides the essential characteristic and, therefore, it may not be treated as a paper product. As per the Explanatory Notes of HSN (Page 667), the impregnated paper and paper board are obtained by treatment with oils, waxes, plastic etc. in such a manner as to permeate them and give them special qualities" e.g. to render them water proof, grease proof and sometimes translucent or transparent'. They are used largely for protective wrapping or as insulating materials. The product under examination is finally used after peeling off the layer of paper in the manufacture of shoe-uppers. Therefore, as already stated, the essential characteristic to the product is imparted by the fabric with a coating of adhesive. 4. The classification of the said product under chapter 64 as parts of footware has also been examined. It is felt that such parts which are in identifiable form only can be covered as parts of footware under Chapter 64. Therefore, the appropriate classification of the product which is in running length would appear to be under Heading No. 59.09 of CET. The Heading covers all other textile fabrics and articles of a kind suitable for industrial use (e.g. for textile fabrics, combined with one or more layers of rubber, leather or other material, bolting cloth, endless belts of textile fabrics, straining cloth). Therefore, the Board is of the opinion that the product under reference can be treated or laminated product having a layer of fabrics impregnated with a layer of paper with the help on an adhesive and its classification in Chapter Heading No. 59.09 of the CET appears to be more appropriate. 5. This may be brought to the notice of the field formations and trade interests for necessary action.