9911796707
TMI Blog2007 (7) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... Core yarn containing 85% or more by weight of cotton manufactured and cleared by the assessee during 8/98 to 1/99 as single yarn under Chapter Sub-Heading (CSH) 5205.11 of the Central Excise Tariff and demanded applicable duty of Rs. 9,90,124/- not paid. Commissioner imposed penalty of Rs. Two lakhs on the assessee under Rule 173Q of the Central Excise Rules, 1944. Facts of the case in brief are that the appellants manufactured a variety of yarn comprising a core of elastomeric (spandex) yarn and a sheath of cotton rove. The cotton content of the yarn was ascertained to be 93.1% by weight and elastomeric yarn 6.9%. The impugned yarn was got tested by the departmental Chemical Examiner who certified the sample to be a white single ply spun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is a single ply spun yarn comprising 93.1% cotton and 6.9% elostomeric yarn. The test reports of the experts on the subject certify that the product is not a single yarn or a multiple (folded) or cabled yarn. As the subject yarn is composed of a filament yarn enveloped in cotton rove we find the same to conform to the HSN definition of single yarn. 3.1 There is no dispute that the subject yarn contains more than 85% by weight of cotton. Both the parties agree that the item does not satisfy the description multiple (folded) or cabled yarn of CSH 5205.19. Assessee claims that the goods are classifiable as "others" of CSH 5205.90, as in their view, the item is not a single yarn or multiple (folded) yarn or cabled yarn of the other two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hread), containing 85% or more by weight of cotton. The sub-headings 5205.11 and 5205.19 preceded by two double dashes come under the following heading with a single dash, "- In or in relation to the manufacture of which any process is ordinarily on with the aid of power." Hence all the cotton yarn of Heading 5205 manufactured with the aid of power have to fall under either of the headings 5205.11 or 5205.19. The only other heading with a single dash under Heading 5205 succeeding the above single dash entry is " Other". It can only cover such yarn of Heading 5205 manufactured without the aid of power. It is not disputed that the subject yarn is produced with the aid of power. Therefore we uphold the classification of Cotton Core Yarn un ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
