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2021 (10) TMI 149 - APPELLATE AUTHORITY FOR ADVANCE RULING,Classification of goods - cotton grey fabrics having construction count of 20’’s with read and peak 60x60/ Fusible Cotton interlining fabrics - classifiable under Chapter 52 or 59? - CBEC’s Circular No.254/88/96-CX dated 18.10.1996 - HELD THAT:- Ahmedabad Textile Industry’s Research Association (commonly known as ATIRA) is an autonomous non-profit association for textile research located in Ahmedabad and is the largest association for textile research & allied industries in India which was established on 13 December 1947 and was recognized by the Council of Scientific and Industrial Research under the Ministry of Science and Technology, Government of India - Since the Chapter Note 2(a) of Chapter 59 stipulates that fabrics/products as detailed/described under Column(2) below, corresponding to Sr.Nos.(1) to (5) of the said note under Column(1) below, will not be covered under Heading 59.03/will be excluded from Heading 59.03, it is found prudent to compare the same to the test results mentioned above in order to find out whether the said product is covered under Heading 5903 or otherwise. All the five criteria/condition required for the product of the appellant for being classified under the Heading 5903, have been fulfilled. It is therefore found that based on the test results of the sample product/fabric(obtained by the appellant from ATIRA, Ahmedabad), the said product ‘Fusible interlining fabric of cotton’ is undoubtedly classifiable under Heading 5903 of the Customs Tariff Act, 1975(51 of 1975) - chapter note of Chapter 52 as well as the explanatory notes to HSN with respect of the headings 5208, 5209 and 5212, we find that it does not cover laminated fabrics or fabrics coated with plastics. Hence, it can be concluded that ‘Fusible Interlining fabrics of cotton’ will not be covered under Chapter 52 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975). Irrespective of the fact as to whether the fabric of the appellant fulfills the criteria for classification under Heading 5903 or otherwise as per exclusion clauses (1) to (5) of Chapter Note 2(a) of Chapter 59, it would still be classified under Heading 5903 only, on account of the Explanatory notes to the HSN, which states that ‘textile fabrics which are spattered by spraying with visible particles of thermoplastic material and are capable of providing a bond to other fabrics or materials on the application of heat and pressure are classifiable under heading 5903’ read with the grounds mentioned in Circular No. 433/66/98-CX-6 dated 27/11/1998 - the product ‘fusible interlining fabric of cotton’ of the appellant would undoubtedly be classifiable under Heading 5903 of the Customs Tariff Act, 1975 only.
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