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TMI Blog1991 (6) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... ulosic spun yarn falling under Tariff Item 18(III) of the erstwhile Central Excise Tariff. For the first time they began to manufacture a new item of yarn viscose/Non-cellulosic synthetic Waste Yarn falling under Tariff Item 18(III)(i) i.e. man made fibres of cellulosic origin which predominates in weight with blended non-cellulosic synthetic waste, coming under 18(IV) of the erstwhile Central Excise Tariff. The appellant filed a Classification List No. 28 on 16-11-1983 in respect of the new product. The Superintendent of Central Excise by his letter dated 19-11-1983 informed the appellant that the above classification is not correct as the waste which was declared as non-cellulosic synthetic waste is of non-cellulosic origin. The appellants replied that the impugned yarn is made by blending man made fibre of cellulosic origin which predominates in weight and non-cellulosic waste under 18(IV) is another raw material. It was also submitted that man made fibre of cellulosic origin predominates in weight and it contains only raw materials of non cellulosic waste mentioned in 18(IV) and non-cellulosic man made fibres coming under 18(1) is totally absent. 3. The appellants pointed out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... innable fibre, entangled fibre, chips and neps, average length of fibres, strength of yarn for finding out whether the yarn contains non-cellulosic synthetic waste, coming under 18(IV) or it is polyester fibre under 18(1). The Asstt. Collector stated in his letter of 16-8-1984 that the matters mentioned in the appellants letter are not relevant for the classification of yarn in question. However, re-test can be done at request. By letter dated 31-8-1984 the appellants requested for a re-test and also produced a test certificate obtained on similar material by another company from Shri Ram Test House. 6. The Asstt. Collector by letter dated 13-8-1985 forwarded a copy of the test report. The appellants informed that they are aggrieved by the test result as the percentage of spinnable fibre, percentage of entangled fibre, chips, neps, etc. were absent in the test result. A show cause notice dated 30-5-1986 was issued by the Asstt. Collector and after hearing, the Asstt. Collector of Central Excise passed order dated 29-7-1986 that test result was not enough and the Asstt. Collector agreed with the appellant that re-test should be conducted regarding the various parameters required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of yarn (including sewing thread) of artificial staple fibre not containing synthetic staple fibres. Yarn made out of a blend of artificial staple fibre and synthetic staple fibre waste was held classifiable under Heading 55.05 CET. Paragraph 13, 14, 15 and 16 of the order are re-produced below :- 13. A wealth of tehnical literature has been placed before us on what is meant by staple" staple fibre . At P/409 of Bernard Corbman s Textiles-fibre to fabrics (5th Edition) it is mentioned that staple is produced in a wide range of deniers and lengths according to the desired end-uses . Modern Textiles by Dorothy Lyle (at page 26) defines staple fibres, natural or man-made as short lengths measured in inches or a fraction of an inch . In Kirk Othmer s Encyclopedia of Chemical Technology 3rd edition Volume 16 Staple fibres find a mention at pages 106 107 as of relatively uniform length. Staple is defined at page 29 of the Encyclopedia of Textile by the Editors of American Fabrics Fashions Magazine (3rd edition) as fibre in short, controlled lengths, cut from continuous filament. Yarns spun from it are known as staple yarns . The Dictionary of Textile Terms (at pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve facts clearly establish that the raw materials used in the disputed yarn were not synthetic staple fibre. Still the chemical examiner, vide his test reports at Annexure B to the authorisation, has reported that the yarn contained synthetic staple fibre. Obviously, therefore, his reports are based on mis-conception of the definition of staple fibre and consequently these test reports cannot be reliable basis for determining the classification. The Revenue s appeal is based on these test reports. The Revenue has not produced any material, except these test reports, to prove that the yarn in dispute contained synthetic staple fibre. On the other hand, the Collector (Appeals) has given convincing reasons to hold the classification of the yarn under Heading 55.05. 16. In the light of the above discussion, classification under Heading 54.06 is ruled out. The yarn also does not fall within the ambit of heading 5504.31 as it is not yarn containing other synthetic staple fibre in the form of waste or in the form of fibre produced out of such wastes, in which acryllc or modacrylic staple fibre predominates by weight. The yarn is rightly classifiable under Heading 55.05." 10. The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and same in length in a bale . Para 3.2.1 of the ASTM standards (page 92 of the compilation in E/333/90-D) clearly stipulates that commercial shipments of staple or Man-made fibre should not include cut waste or short fibres of variable length made by breaking a tow or top." 11. In para 14, it was observed that the language of TI 18-III is clear and explicit. What is stipulated under TI 18-III(i) is cellulosic spun yarn not containing any man-made fibres of non-cellulosic origin. Man-made fibres of non-cellulosic origin under TI 18-III means man-made fibres of non-cellulosic origin mentioned in TI 18-I(i). Under TI 18-III(ii) the legislature has clearly stipulated containing man-made fibres of non-cellulosic origin". This sub-item can apply only if fibres of non-cellulosic origin mentioned in TI 18-I(i) are blended. It is not the case of the Department that non-cellulosic fibre was the input which was blended with viscose in predominance." 12. In paragraph 19 it was held that to equate waste with fibres would be to do violence to the legislative intent. Waste is a well known marketable commodity both of Indian and foreign origin. Non-cellulosic waste is imported regularly. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IV. ............. This does not mean that if waste is subjected to careful processing in the blow rooms and careful carding fibre cannot be extracted from the waste. From the fact that the company is able to spin yarn using such waste shows that fibre is generated from the waste and it is this fibre which is used for spinning yarn........... it is clear that fibre is coming into existence immediately before the stage of spinning even though to start with the fibre was not present in a form suitable for spinning at which stage it was called waste." This reasoning of the Assistant Collector is no longer valid in view of the decisions of the Tribunal in Priyadarshini Mills case and Vardhan Syntex case (supra). The Department s stand that staple fibre can be extracted from the waste does not any longer hold good as it has been held by the Tribunal that there is clear distinction between waste and fibre. 15. Further in the test report dated 14-2-1987 (page 85 of the paper book) the description of the samples as being in the form of lumps of different coloured fibres and heterogeneous mass with cut ends in varying short lengths. Also clearly shows tliat what was used for blending with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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