Per P.S. Bajaj :

In these appeals the issue relates to the classification of Tarpaulin Cloth/water proof canvass cloth.

2. The appellants are engaged in the manufacture of Tarpaulin cloth/wax coated water-proofed canvass. They procure grey cloth of required quality from various mills and powerloom units. That cloth is dipped by them in the tanks in which the mixture of wax, china clay, yellow chlorine etc. is transferred after heating the same in the heating pans. Thereafter, the cloth is passed through rollers which are operated manually and requested to required thickness. After drying the cloth, it is cut and stitched also by them according to the required size with the help of manually operated stitching machines.

3. According to the appellants, their product falls under Chapter 52 (Heading 52.06) whereas the stand taken up by the Revenue is that the product of the appellants is not covered by that chapter, but by Chapter 59 (Heading 59.06) as held by the Collector in the impugned order.

4. We have heard both the sides.

5. The learned counsel for the appellants has contended that the Tarpaulin cloth manufactured by the appellants squarely falls under Chapter 52 (Heading 52.06) having been prepared from the cotton fabric subjected to water proofing. On the other hand, the learned JDR while refuting this contention of the counsel, has argued that the product of the appellants falls under Chapter 59 (Heading 59.06) being impregnated, coated/laminated textile fabric and that Collector has rightly so classified.

6. In order to ascertain the proper classification of the product in question, it would be beneficial to refer to Chapter 52 (Heading 52.06) and Chapter 59 (Heading 59.06) of the CETA 1985. Chapter 52 relates to the cotton fabrics classification and its Heading 52.06.00 reads as under :-

"52.06 Cotton fabrics (excluding fabrics cover under Heading Nos. 52.09, 52.10 and 52.11, -

(a) woven on looms other handlooms, and

(b) subjected to the process of bleaching, mercerising, dyeing, printing, water-proofing, shrink-proofing, organdie processing or any other process or any two or more of these processes with the aid of power or steam."

7. The Chapter 59 deals with the classification of impregnated, coated, covered or laminated textile fabrics and textile articles of a kind suitable for industrial use. Its Heading 59.06 reads as under :-

However, Section Note 5 (earlier it was Section Note 4 till 1989-90) excludes the applicability of Heading 59.06 to certain fabrics as detailed therein. Its para (a) with which we are concerned, reads as under :-

"(5) Heading No. 59.06 does not apply to -

(a) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of by resulting change of colour;

Therefore, it is quite evident that the fabric in which the impregnation, coating or covering cannot be seen with the naked eyes would not stand covered by Heading 59.06 for the purpose of classification. It is only when the impregnation, coating or covering can be seen with the naked eyes on the fabric, the product would be classifiable under this Heading.

8. In the Hand Book on Glossary of Textile Terms the expression "Impregnated" and "Coated Fabric" have been defined. The "impregnated fabric" is a fabric in which interstiches between the yarn are completely filled with the impregnating compound throughout the thickness of the material, as distinguished from sized or coated materials, w