9911796707
TMI Blog1995 (5) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... n the T.I. 18E, coming within the ambit of the tariff description `Spun (discontinuous) yarn in which man-made fibres of non-cellulosic origin, other than the acrylic fibre, predominate in weight'. But blended yarn in which polypropylene predominates in weight has not been exempted. It is for the assessee to establish that the goods manufactured by him come within the ambit of the exemption notification. Since it is a case of exemption from duty, there is no question of any liberal construction to extend the term and the scope of the exemption notification. 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 exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oint of time stood as under :- Man-made fibres, other than mineral fibres :"18.I. Non-cellulosic(i) Cellulosic(ii) Man-made filament yarns :II. Non-cellulosic -(i) other than textured(a) textured(b) Explanation. - "Textured yarn" means yarn that has been processed to introduce crimps, coils, loops or curls among the length of the filaments and shall include bulked yarn and stretch yarn. Cellulosic(i) Metallized(ii) Cellulosic spun yarn :III. 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 - not containing, or containing not more than one-sixth by(i) weight of non-cellulosic fibre ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn which man-made fibres of non-cellulosic origin, other than acrylic fibre, predominate in weight and, in or in relation to the manufacture of which any process is ordinarily carried on with 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." 5.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 T.I. 18E of the First Schedule to the Central Excises and Salt Act, 1944. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as further been argued that there is no dispute that the yarn manufactured by the appellant falls under T.I. No. 18E. The tariff description of Item 18E, Non-cellulosic spun yarn, comprehends `Spun (discontinuous) yarn which man-made fibre 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 1-12-1977 exempted poypropylene spun yarn falling under Tariff Item No. 18E of the First Schedule to the Central Excises and Salt Act, 1944 from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto the constitution of the composite fabric. 10.It was argued that there is 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% and viscose yarn 48% 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. 11.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 dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case. This 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 introduces a deeming provision to decide under which sub-item or Items Nos. 18-III, 18A, 18B, 18C, 18D, 18E, 18F 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 T.I. 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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