Central Excise - Woollen fabrics woven from shoddy yarn - Classification regarding - Central Excise - 20/88-CX.1

Central Excise - Woollen fabrics woven from shoddy yarn - Classification regarding Circular No. 20/88-CX.1 Dated 26-5-1988 [From F. No. 51/6/87-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Woollen fabrics woven from shoddy yarn - Classification regarding. A doubt has been raised as to the classification of shoddy woollen yarn, shoddy woollen blankets and fabrics made of shoddy yarn and as to what should be treated as shoddy woollen yarn, shoddy woollen blankets and fabrics made of shoddy yarn falling under Central Excise Tariff sub-headings 5104.00, 5107.10 (b), 5107.91 and 5107.92. It has been reported that the samples of woollen yarn and blankets were sent to the Chemical Examiner as well as the National Test House, Alipur and both have expressed their inability to ascertain the nature of the yarn - whether shoddy or otherwise. 2. The matter has been examined in the Board. In the H.S.N. Explanatory Notes (Page No. 724) it is mentioned that garnetted wool (reclaimed or re-worked wool) includes shoddy and mungo obtained by garnetting woollen or worsted yarn or rags. The Chief Chemist who was consulted in the matter has after examining the samples stated that it is not possible to ascertain the percentage of shoddy wool separately in woollen yarn or fabric and only the total wool content can be determined. According to the definitions given in various Textile Encyclopaedia shoddy is the fibrous material made in the woollen trade by pulling down knitted or woven fabrics in rag form. Shoddy is generally obtained by garnetting of woollen rags or wastes. 3. From the above it is obvious that from the raw materials used and the process undertaken it is easy to find out whether a product is shoddy woollen yarn/fabric or otherwise. For the purpose of classification whether a product is shoddy yarn/shoddy blankets etc. the principles laid down in Note 2(A)and Note 2(B) (ii) of Section XI of the Central Excise Tariff Schedule may be followed. According to Note 2(A) of Section XI textile articles classifiable in Chapters 50 to 55 and made of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over any other single textile material and according to Note 2(B) (ii) the choice of appropriate heading shall be effected by determining first the Chapter and then the applicable heading within that Chapter, disregarding any materials not classified in that Chapter. 4. In view of the above the classification may be decided on the basis of the raw materials used, the processes undertaken and the principles laid down in Note 2 of Section XI of the Central Excise Tariff Schedule. For this purpose Collectors may prescribe suitable subsidiary records and arrange for periodical inspections/checks to ensure that the conditions for availing exemption/concessional rate of duty are fulfilled.