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TMI Blog1992 (3) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... kgs. of such yarn contained in 275 blankets. He has also imposed a penalty of Rs. 2,000/- on the appellants under Rule 173Q of the Central Excise Rules, 1944. 2. The brief facts of the case are that the appellants are manufacturers of Shoddy Acrylic yarn. They were issued with a show cause notice dated 30-9-1986 by which it was alleged that the assessee had filed a letter dated 30-4-1986 to the Supdt. of Central Excise Range II, Dewas about their proposed manufacture of Shoddy Acrylic yarn. Shoddy acrylic blankets. Shoddy Acrylic fabric. It stated that the Range Superintendent paid a visit to the premises of the appellants factory in response to these letters and requested the appellants to furnish the details of constituent fibre and y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee contended that the presence of fibres other than Shoddy in the acrylic predominating yarn, does not bar classification of the product in question under sub-heading 5504.31. It was further contended that by a clear interpretation of Section 2(A) of Section II1 (Textiles and textile articles) of the CET Act, 1985, the manufactured item would continue to fall under sub-heading 5504.31 of CET, 1985. 3. The learned Addl. Collector after giving personal hearing, has noted the results of the chemical examination of the samples of yarn drawn and sent for the test. The test revealed the following results - Acrylic fibre (1) (62% to 83%) Synthetic fibre (2) (5% to 13%) Natural fibre-cellulosic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent. Thus the yarn would either be classifiable under sub-heading 5504.31 or 5504.32 or 5504.39. It could not be classifiable under sub-heading 5504.32 owing to the presence of cellulosic and non-cellulosic fibre. Similarly, owing to the presence of such natural fibres it cannot merit classification under 5504.31 because under this sub-heading the yarn, in addition to acrylic fibre, has got to have only other synthetic fibre. Consequently, the yarn in question is classifiable under 5504.39. 4. The appellants are aggrieved with this order. It is contended by the appellants that the only requirement of sub-heading 5504 of the tariff that acrylic or shoddy acrylic yarn staple fibre must predominate by weight and must contain other syntheti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the goods had to be done under sub-heading 5504.31. He contended that the entry has to be read as it is and words cannot be added to it so as to read it differently nor implication can be drawn from the tariff headings. He contended that the Bombay Collectorate Trade Notice No. 146/90 dated 26-12-1990 as well as Indore Trade Notice No. 150/90 dated 27-12-1990, had also clarified this position with regard to the predominance of acrylic fibre and that presence of a small percentage of natural fibre would not take away the goods from the ambit of sub-heading 5404.31. 6. Shri Nair, learned DR arguing for the Revenue, submitted that the classification done by the Revenue under sub-heading 5404.39 is a correct one. He contended that for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if consisting wholly of that one textile material which predominates by weight over any other single textile material - (B) For the purposes of the above rule - (i) Gimped horsehair yarn (Chapter 51) and metallised yarn (Chapter 56) are to be treated as a single textile material the weight of which is to be taken as the aggregate of the weights of its components or the classification of woven fabrics, metal thread is to be regarded as a textile material; (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; (iii) When both Chapters 54 and 55 are involved with any other chapter, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he two sub-headings 5504.31 and 5504.32 under section note yarn in which acrylic or modacrylic staple fibre predominates by weight , is not satisfied. The goods having satisfied all the conditions of Heading 5504.31 cannot be taken out from it and classified under Heading 5504.39 by a mere presence of a small quantity of natural fibre cellulosic and non-cellulosic, so long as the goods have the predominance of synthetic staple fibre in the form of waste or in the form of fibre produced out of such waste. The ruling relied by Shri Nair, DR in the case of Doypack Systems (P) Ltd. (supra) does not deal with this tariff entry and it deals to an interpretation of the provisions of Swadeshi Cotton Mills Ltd. (Acquisition and Transfer of Undertak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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