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TMI Blog2004 (5) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... stiff and heavily sized with starch gum and inorganic fillers. The respondents classified this product under Heading 52.06 by declaring their product as subjected to the process of bleaching and finishing. However, later on, when the Department inspected the unit of the respondents, they thought that the product in question will have to be classified under Heading 59.01. Sample of the product was taken for testing and the report thereto is that the sample is in the form of open weave cotton fabrics heavily sized and stiff with starch gum and inorganic fillers on treatment with hot water the fabrics looses all its stiffness. On this material, a show cause notice was issued to the respondents demanding differential duty for different periods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd on merits. 5.The Revenue contended : 1. that specific description of Heading 59.01, viz., textile fabrics coated with gum of amylaceous substances of a kind used for the outer cover of book or the like is satisfied in this case; 2. Explanatory Note to HSN made it clear that not only cloth, plain weave woven fabrics, usually of cotton, linen or man-made heavily coated with gum or amylaceous substances which is used for book binding, but also such cloth with other end-uses, would get cover under this heading. 6.The Tribunal held that the Board by their instructions issued on 2-9-1988 had clarified that for classifying such products under Heading 59.03, the textile fabrics should have a continuous and adherent films or layer on one sid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d fabric and once the interstics of cotton fabrics were filled and treated with gum, then alone it would come under Chapter 59 and in the present cases the item is porous padded and the interstics are not filled and, therefore, the product cannot go under Chapter 59 at all. The Tribunal noticed firstly as to the maintainability of the appeal and thereafter on merits of the matter. The Tribunal proceeded on the basis that the burden of classification is on the Department and no evidence had been placed by the Department to show that the product is a 'Buckram' and it requires to be classified under Chapter 59 and Explanatory Note IV to Heading 59.01 indicates that 'Buckram' and similar stiffened textile fabric of a kind used for that foundati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indicates that the interstics are not filled in these cases and there is no permanent stiffness. The requirement of Heading 59 clearly shows that the textile fabric has to be stiffened and the definitions which are relied by the Revenue indicates that the sizing have to be heavy and the interstics have to be filled and the stiffness has to be permanent; that the test results do not support the department's case and also there is no specific finding that the material is a 'Buckram'. They also adverted to the Tariff Advice No. 36/84, dated 27-7-1984 issued to all the Collectors indicating that the object of exemption is to cover such fabrics which are treated only to achieve a temporary effect of sizing [stiffening] and gloss and addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h vestments." "A heavy flat duck or Osnaburg, stiff and durable starch filled or pyroxylin treated and given a vellum, linen-like finish. Used especially on library and reference books." 10.The Department in order to succeed in classifying the products of the respondents to fall under Heading 59.01 of the Act will have to fulfil the following conditions : 1. That the fabric in question is a stiffened textile. 2. That the stiffness has to be durable and permanent in nature. 3. That the fabric is heavily sized. 11.It is the stand of the respondents that the stiffness as contemplated under Chapte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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