9911796707
TMI Blog1995 (5) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... on. Such exemption notification must be strictly construed and the assessee should bring himself squarely within the ambit of the notification. No extended meaning can be given to the exempted item to enlarge the scope of exemption granted by the notification. - Civil Appeal No. 4154 of 1988 - - - Dated:- 9-5-1995 - SAHAI R.M. AND SUHAS CHANDRA SEN JJ. A.K. Ganguli, Senior Advocate (C.B. Babu, N.K. Verma, and Dilip Tandon, Advocates, with him), for the respondent. D.A. Dave, Bhaskar Pradhan, R.N. Karanjawala, Ms. Manik Karanjawala, Ms. Nandini Gore, for the appellant. -------------------------------------------------- The judgment of the Court was delivered by SUHAS C. SEN, J. -M/s. Rajasthan Spinning and We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tured Explanation .-'Textured yarn' means yarn that has been processed to introduce crimps, coils, loops or curls along the length of the filaments and shall include bulked yarn and stretch yarn. (ii) Cellulosic (iii) Metallized III. Cellulosic spun yarn: Yarn in which man-made fibre of cellulosic origin predominates in weight and, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power- (i) not containing, or containing not more than one-sixth by weight of non- cellulosic fibre calculated on the total fibre content, (ii) containing more than one-sixth by weight of non-cellulosic fibre calculated on the total fibre content. Explanation I. -'Count' means the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the aid of power. Explanation .-Explanation III under sub-item III of item No. 18 shall, so far as may be, apply in relation to this item as it applies in relation to that item." During the year 1978-79, the appellant-company manufactured non-cellulosic spun yarn of the following composition: 52% polypropylene fibre 48% viscose fibre Since non-cellulosic fibre predominated in weight, the yarn manufactured by the appellant-company was liable to be classified under tariff item 18E of the First Schedule to the Central Excises and Salt Act, 1944. The appellant- company, however, claimed benefit of exemption from payment of the whole amount of duty of excise leviable under tariff item 18E on such yarn in view of a Notification N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , non-cellulosic spun yarn, comprehends "spun (discontinuous) yarn in which man- made fibres of non-cellulosic origin, other than acrylic fibre, predominate in weight". That means polypropylene spun yarn, which is a variety of non-cellulosic spun yarn, will fall under this tariff description, even if it was blended with some other type of yarn, provided that the polypropylene component of the blended yarn was predominant in weight. The notification dated December 1, 1977, exempted polypropylene spun yarn falling under tariff item No. 18E of the First Schedule to the Central Excises and Salt Act, 1944, from the duty of excise, which would include not only pure polypropylene spun yarn, but also blended yarn, if the polypropylene component of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no dispute that the appellant-company has manufactured a composite yarn in which both polypropylene and viscose yarn have been used, but the character of the yarn produced is derived from the particular type of yarn which predominates in weight. In the instant case, since polypropylene yarn constituted 52 per cent and viscose yarn 48 per cent of the blended yarn, the product must be regarded as polypropylene yarn, and but for the notification, would have been taxed as non-cellulosic yarn falling under item 18E. We are of the view that the contentions made on behalf of the appellant cannot be upheld in the facts of this case and in view of the wording of the notification dated December 1, 1977. This notification exempts from duty polypropy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explanation only enumerates various types of fibres and deals with cases where two or more of the said fibres in any yarn are equal in weight. Explanation III i ntroduces a deeming provision to decide under which sub-items or items Nos. 18-III, 18A, 18B, 18C, 18D, 18E, 18F-I and 18F-II in which such blended yarn will be classified for the purpose of levying duty. But that will not decide the controversy raised in this case. Here, we have a case where the appellant has produced a yarn in which polypropylene predominates. Because of the predominance of polypropylene, the goods produced will be classified as "non-cellulosic spun yarn" under tariff item 18E. The exemption notification, however, is confined to polypropylene spun yarn only. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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