1998 (12) TMI 154

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..... lasundaram, Member (J)]. The appellants herein are engaged in the manufacture of yarn out of viscose fibre, synthetic fibre, cotton, etc. and blends thereof. The yarn is cleared either for home consumption or for export. Inputs required for yarn cleared for home consumption are purchased after payment of duty, while the input required for yarn to be exported viz. fibre, is purchased without .....

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..... sub-heading 5503.19/5503.20 depending upon the origin/predominance of staple fibre content in the waste sought for clearance. Hence this appeal. 2. We have heard Shri K.K. Anand, learned Advocate and Shri R.S. Sangia, learned DR and perused the records. 3. Note 4 to Chapter 55 of the Central Excise Tariff defines hard waste or yarn waste as arising in the manufacture of yarn from fibre. Note .....

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..... nning of staple fibre, cannot over ride the specific Chapter Note viz. Note 3 to Chapter 55. Since Note 3 to Chapter 55 does not cover the goods in dispute and since Note 4 is admittedly not applicable to the waste in question, we hold that the product in dispute (soft waste) does not fall for classification under CET sub-heading 5503.19/5503.20, set aside the impugned order and allow the appeal. .....

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