Classification of Fenaplast or Fancy yarn under Central Excise Tariff - Regarding - Central Excise - 6/87

Classification of Fenaplast or Fancy yarn under Central Excise Tariff - Regarding Circular No 6/87 Dated 30-6-1987 [From F. No. 55/9/87-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of Fenaplast or Fancy yarn under Central Excise Tariff - Regarding. A doubt has been raised regarding the classification of Fenaplast or Fancy Yarn under the Central Excise Tariff. 2. The matter was discussed in the North Zone Conference of Collectors of Central Excise held at New Delhi on 27th and 28th May, 1987. It was noted that the product was produced by twisting filament yarn and spun yarn of different categories which are duty paid. The process involved in "doubling". The product is stated to have two plies but it is not polished or glazed or metallised, the doubt raised was whether such yarn would fall under Chapters 54 or 55 as 'Yarn' depending on the predominance of filament or spun yarn or whether it would be classifiable under Heading 56.06, which covers "other 'special yarns' including gimped yarn and strip, chenile yarn including flock chenile yarn". 3. The Conference noted that Fenaplast yarn contained 73% polyester and 27% viscose. It was observed that as per the Explanatory Notes to the HSN, the products covered under Heading 56.06 are composed of a core, usually of one or more textile yarns around which other yarn are wound spirally. While such yarn may have the appearance of multiple/folded/cabled yarn of Chapter 54 or Chapter 55, it could be distinguished from them because in relation to gimped yarn, the core itself does not undergo twisting with the cover threads. The Conference took note of the opinion of the Deputy Chief Chemist, CRCL and samples of the product were also shown by CCE, Chandigarh. It was observed that fancy yarn as defined in Textile Terms and Definitions is a yarn that differs from the normal construction for single and folded yarn, by way of deliberately produced irregularities in its construction. These irregularities relate to an increased delivery of one of more of its components or to the inclusion of periodic effects, such as knots, loos, curls, slubs and the like. Under the ISI definition of "novelty yarn'' as given in the IS :1234 :1966 entitled "Glossary of textile terms relating to man-made fibre and fabric industry", novelty yarn is defined as "yarn produced for special effects, usually uneven in size or colour." Flakes, nubs, slubs are typical of novelty yarns. The Deputy Chief Chemist was of the view that when a cotton or staple fibre spun yarn is twisted with a man-made filament yarn, without producing any of the visually perceptible special effects, the yarn is nothing more than "doubled yarn". Its classification will, therefore, be governed by the predominance principles as provided under Section notes 2(A) and (b) under Section XI of the present tariff. Accordingly the predominance of the filament or spun yarn would determine whether such products are classifiable under Chapters 52, 54 or 55 of the Tariff. In the specific case of Fenaplast yarn, since polyester fibre predominates, in terms of section Note 2(A) to Section XI, the yarn would fall under sub-heading 5504.29. The Conference was in agreement with the aforesaid views. Board concurs with the above decision arrived at in the Conference.