Central Excise - Classification of 'dipped fabrics' - Regarding - Central Excise - 10/87-CX.1

Central Excise - Classification of 'dipped fabrics' - Regarding Circular No. 10/87-CX.1 Dated 29-7-1987 [From F. No. 59/2/87-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Classification of 'dipped fabrics' - Regarding. A doubt has been raised regarding the correct classification of "dipped fabrics" under the Central Excise Tariff. 2. The process of manufacture of the goods is reported to be as follows. The continuous filament yarn of nylon twisted in plies according to the specification, is wound on a beam in the required number of ends. The beam is then mounted on a loom and the individual ends are suitably drawn and positioned on the loom to insert the required picks in a direction perpendicular to the ends. The resulting woven fabric could be suitably wound and packed. The resultant man-made fabrics are passed through a number of big rollers. The fabrics get stretched between the two rollers, by setting one roller at a lower speed and the other at a higher speed. While the fabrics are being stretched, they are passed through a heating zone, when the fabrics are heated to a temperature of 180oC to 240oC depending upon the material of the fabrics. The heated fabrics are then dipped in RF Latex solution, viz., Resourcinol Formaldehyde Latex Solution, at a temperature of 120oC. The dipped fabrics with the substances stuck thereon are again stretched between the rollers and simultaneously heated to a temperature of 180oC to 240oC in another heating zone with the aid of liquified petroleum gas and then cooled. 3. The doubts raised are as to whether the subject goods are classifiable (a) under Heading 54.09 as Fabrics of man-made filament yarn or (b) under Heading 59.03 as Textile Fabrics impregnated, coated, covered or laminated with plastics or (c) under Heading 59.05 as Rubberised Textile Fabrics or (d) under Heading 59.06 as Textile Fabrics otherwise impregnated, coated or covered. 4. The matter has been examined by the Board in consultation with the Chief Chemist. The Board is of the view that the product is correctly classifiable under Heading 59.05 as Rubberised Textile Fabrics in view of the following reasons : 4.1 Heading 54.09 would be attracted only if there is no heading which provides a more specific description of the goods in the light of Rules 1 3 (a) of the Rules for Interpretation of the Tariff Schedule. In this case Heading 59.05 appears more specific. 4.2 The classification of the product under Heading 59.03 which covers "textile fabrics" impregnated, coated, covered or laminated with plastics, excluding products under Heading 59.02 would not be appropriate because in this case, the impregnation is with rubber/latex and not plastic and resorcinol formaldehyde is only a binding medium between the rubber latex and the fabric. Although it is true that resorcinol formaldehyde latex solution in which the fabrics are dipped is a mixture of plastic and rubber, it is observed that the major component is latex only. There is a nominal percentage of resorcinol formaldehyde in the solution, the function of which is mainly to keep the mobility and workability of latex and to act as binder of the latex to the fabric. Thus, although the solution may be considered as a mixture of plastic and rubber latex, yet the distinguishing fact is that what is deposited or impregnated on the fabric is rubber latex and hence the dipped fabrics could be considered as rubberised fabrics under Heading 59.05. 4.3 Heading 59.06 which covers textile fabrics, otherwise impregnated etc. would also be inappropriate because the expression "otherwise" denotes that the heading is attracted only if classification under other headings preceeding it is ruled out. 4.4 Finally, note 9 to section XI clearly specifies that the expression "impregnated" includes "dipped". In the H.S.N. Explanatory Notes (p. 818) the scope of rubberised textile fabrics is given against Heading 59.06 which corresponds to entry 59.05 of the Central Excise Tariff. It is seen therefrom that the heading is shown to cover textile fabrics, impregnated, coated, covered, or laminated with rubber including dipped fabrics. 5. In view of the aforesaid discussion the Board is of the view that the said goods are correctly classifiable under Heading 59.05 as rubberised textile fabrics.