The classification of textile products depends on the durability and permanence of stiffness, critical for categorizing under specific headings in the Central Excise Tariff.

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 59.01which 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.

4. We may, however, notice that in Collector of Central Excise, Aurangabad v. Solapur Zilla Vinkar Sahakari Federation , 1998 (104) ELT 402, the tribunal held that stiffened fabrics generally used in the interior of garments having been processed into bleached and grey sheeting by applying topioca starch, maize starch, french chalk power and dolomite which render the fabrics stiffening effect, are classifiable under Heading 52.06 of the Act and not under Heading 59.01 thereof. The matter was carried in appeal to this Court in Civil Appeal No.3965 of 1998 and this Court, on 22.2.1999, dismissed the same, both on the ground of delay and 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 side of the fabric surface and the fabric should be impervious and should satisfy the conditions prescribed in Note 2 of Chapter 59. They also adverted to letter issued by the Ministry of Finance, Department of Revenue dated 7.12.1989 wherein it had been confirmed that bleached and sized cotton fabrics manufactured by them merit cla