Rajendra Babu, C.J.I - (1.) -The question that falls for consideration in this batch of cases is as to the classification of the bleached sheeting which is heavily sized and manufactured by each of the respondents and whether the same falls under Heading 52.06 of the Central Excise Tariff Act, 1985 (for short the Act) or under Heading 59.01 as sought by them.
(2.) The respondents are engaged in the manufacture of cotton fabrics which is 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. The Assistant Commissioner, Central Excise, by his order made on 16-8-1989, dropped the demand raised in the show cause notice by holding that the said cotton fabrics were correctly classifiable under Heading 52.06 and approved two classification lists accordingly.
(3.) The matter was carried in appeal to the Collector (Appeals) who allowed the appeal and affirmed the demand of duty by holding that the product in question is specifically covered under Heading 59.01 which provides a specific tariff entry for stiffness textile fabrics. The matter was further carried to CEGAT. The Tribunal held that the cotton fabrics though heavily sized do not have permanent stiffness to be treated as similar to Buckram and accordingly classifiable under Heading 52.06 and not under Heading 59.01 of the Act. Hence these appeals.;