C.Ex - MMSF - Classification of certain 'Blended Yarn' whether under sub-heading 5504.31 or 5504.39 - Clarification regarding - Central Excise - 8/MMSF/89

C.Ex - MMSF - Classification of certain 'Blended Yarn' whether under sub-heading 5504.31 or 5504.39 - Clarification regarding Circular No. 8/MMSF/89 Dated 7-7-1989 [From F. No. 55/5/88-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : C.Ex - MMSF - Classification of certain 'Blended Yarn' whether under sub-heading 5504.31 or 5504.39 - Clarification regarding. A doubt has been raised as to whether 'Blended Yarn' containing 62% to 83% Acrylic fibre, 5% to 13% other Synthetic fibre, along with 0.6% to 7% Cellulosic and about 6% to 20% Non-Cellulosic Natural fibres is classifiable under sub-heading 5504.31 or 5504.39 of the CET. 2. The issue regarding classification of the said yarn obtained by the process of garnetting of chindies and rags, came up for discussion in the North Zone Tariff Conference held on 12-2-1988. It was felt that a plain reading of the entries in the Tariff would lead to the conclusion that the appropriate classification of such yarn would be under sub-heading 5504.39. It was, decided in the conference that before a decision could be taken in the matter, the practice followed in other Collectorates be ascertained and the matter examined in consultation with the Chief Chemist. 3. The Chief Chemist opined that "sub-heading 5504.31 to 5504.39 refer to 'yarn in which acrylic or modacrylic staple fibre predominates in weight. Sub-heading 5504.31 reads as yarn containing other synthetic staple fibre in the form of waste or in the form of fibre produced out of such wastes. A plain reading of this would mean that a blended yarn in which acrylic fibre predominates in weight and which contains other synthetic staple fibre in the form of waste or in the form of fibre produced out of such wastes, would be classifiable under this heading. In the instant case, the blended yarn, although contains acrylic fibre which predominates in weight, along with other synthetic fibre produced from garneted stock; it also contains natural fibres cellulosic and non-cellulosic. However, as per requirement of sub-heading 5504.31 blended yarn under this sub-heading should contain acrylic fibre and other synthetic staple fibres only. As the yarn under reference contains natural fibres also in addition to acrylic and other synthetic fibres, it would fall outside the purview of sub-heading No. 5504.31 and would be appropriately classifiable under sub-heading 5504.39 of the Central Excise Tariff." 4. The sub-heading 5504.31 does not include possibility of presence of natural fibres in the yarns classified there under. Thus yarn in which acrylic or modacrylic staple fibre predominates in weight and contains other synthetic staple fibre in the form of waste or in the form of fibre produced out of such wastes, is classifiable under sub-heading 5504.31 and if it contains anything more than synthetic staple fibre, in such a case the classification would be under sub-heading 5504.39.