Per P.C. Jain :

Matter called. None for the appellants, They have, however, requested for deciding the case on merits on the basis of available records.

2. Question involved in the present matter is regarding tariff classification of Leno Fabrics manufactured by the appellants during 1987 and 1988. The appellants claimed the classification of the said fabric under tariff item 5205 which reads as follows:

The Revenue on the other hand has classified the aforesaid fabric under tariff heading 59.09 which reads as follows:

3. In order to deal with the question of classification, it is appropriate to reproduce the process of manufacture as described in the order-in-original passed by the Assistant Collector:-

i) Process of manufacture of Leno Fabrics : Cotton spun yarn is woven on looms as in the case of other cotton fabrics the construction details are as under:

ii) These Leno fabrics are not coated or impregnated. They are despatched in the form of grey unprocessed.

4. Main reason given by the authorities below for classifying the product under TI 59.09 is that the said fabric is used in tea industry and therefore according to them it is an industrial product ready to use. On the other hand, the appellants submit that it is grey cotton fabric which is sold in the loomstate condition in running lengths of 250 to 600 mtrs. No further processing of the said fabric is undertaken. It is pointed out by the appellants in their appeal memo that no further processing of the fabric is undertaken. They submit that perusal of the various entries in Chapter 59 indicates that textile fabrics has been subjected to some process of the other. For example, heading 59.01 speaks of textile fabrics coated with gum. Heading 59.02 speaks of tyre cord fabrics of high tenacity unit and so on. It is therefore, submitted that grey cotton fabrics unprocessed which is manufactured by them and sold as such would not be covered by tariff heading 59.09. The heading imposed again, according to the appellants, is 52.05, The appellants have also relied on an order-in-appeal passed by Collector of Central Excise (A), Bombay (Exhibit-V) which has held that fabrics not subjected to any process are rightly covered under tariff heading 52.05 and headings under chapter 59 have been ruled out in the said order.

5. Oppossing the contentions, Ld. SDR Shri A.K. Agarwal reiterates the findings of the adjudicating authority and the lower appellate authority. The lower appellate authority has stated that the only use to which the fabric is put is in tea industry for withering of tea leaves. In withering of tea leaves the said fabrics works as a straining cloth and therefore it is held that it is covered under heading 59.09.

6. We have carefully considered the pleas advanced from both sides. We observe that Chapter 59 and the various headings therein as rightly pointed out by the appellants consists of various textile fabrics which have been subjected to further processing after weaving thereof. Heading 59.09 will therefore take its colour from the earlier headings of the said chapter. The said heading cannot be read in isolation from the other headings of Chapter 59 because it speaks of "all other textile products and articles ....". The word 'other' mentioned in heading suggests that they have to be of the type which are mentioned in the earlier headings becaus