Central Excise - Classification of waste arising during manufacture of artificial filament yarn - Classification regarding - Central Excise - MMF/19/87

Central Excise - Classification of waste arising during manufacture of artificial filament yarn - Classification regarding Circular No. MMF/19/87 Dated 31-12-1987 [From F. No. 54/4/87-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Classification of waste arising during manufacture of artificial filament yarn - Classification regarding . A doubt has been raised whether the reeling and coning "waste" arising during the manufacture of "artificial filament yarn" would be classifiable under sub-heading 5401. 20 as "waste of artificial filament" or under Heading 54.04 as artificial filament yarn and chargeable to duty accordingly. 2. The matter has been examined in the Board. It is observed that sub-heading 5401.20 covers waste of artificial filaments and according to Note 5 of Chapter 54 "waste" means wastes arising in or in relation to the manufacture of (i) filaments, or (ii) strips and the like of synthetic or artificial textile material of an apparent width not exceeding 5 mm. In the instant case the waste arises in the course of reeling/coning of artificial filament yarn, which occurs after the manufacture of artificial filaments. In other words, the waste in question arises during the manufacture of filament yarn and not in the course of manufacture of filaments. Thus the said waste is not covered under Heading 54.01. It is correctly classifiable under Heading No. 54.04 or Heading 54.05 depending on whether it is texturised or not.