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TMI Blog1996 (10) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... cotton. Polyester is a non-cellulosic man-made fibre, while viscose is a cellulosic man-made fibre. The case of the Collector of Central Excise is that the fabric falls under Item 22 of the Central Excise Tariff Schedule, whereas the CEGAT has taken the view that it falls under Item No. 19 (sic) of the Tariff Schedule. 2.Relevant extracts from the aforesaid Tariff Items are given below :- "Item No. 19. Cotton Fabrics. "Cotton Fabrics" means all varieties of fabrics manufactured either wholly or partly from cotton and includes dhoties, sarees, chadders, bedsheets, counterpanes, table-clothes, embroidery in the piece, in strips or in motifs and fabric impregnated, coated or laminated with preparations of cellulose derivatives or of other a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fibre or yarn, predominates in weight: Provided that in the case of embroidery in the piece, in strips or in motifs and fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials, such predominance shall be in relation to the base fabrics which are embroidered or impregnated, coated or laminated, as the case may be. ... ... ... Explanation II :- This Item does not include glass fabrics or fabrics falling under Item No. 19 or Item No. 21. Explanation III :- Explanation II under Item No. 19 shall, so far as may be, apply in relation to this item as it applies in relation to that item." The Tariff Entries are quite clear and there is no ambiguity as to their meaning. In or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han 50 per cent in weight. This was not the case here. The facts were not disputed by the Revenue but a legal argument was advanced that if a fabric comprised of three or four types of fibre, it was enough if the cotton was the largest constituent of the fabric. The predominant fibre of the fabric would be cotton. Therefore, the fabric will have to be treated as cotton fabric. The Tribunal rejected this argument by pointing out that this contention, if upheld, would lead to absurdity. Even if a fabric was composed of five different fibres of which cotton was only 22 per cent in weight, even then, it will have to be held that cotton was the predominant fibre and the fabric will be cotton fabric. The Tribunal held that the predominance in Tar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... three types of yarn manufactured by the assessee, the percentage of acrylic fibre was 40 per cent as compared to the other two fibres which were either 24 per cent and 26 per cent or 45 per cent and 5 per cent. It was held that acrylic fibre must be held to predominate in weight in the composite yarn manufactured by the assessee. The reason given was that Explanation III to sub-item (iii) under Tariff Item No. 18 made it clear that where a composite yarn contained various types of yarn which were all equal in weight, then the yarn which attracted the highest amount of duty shall be deemed to be predominant. Because of this explanation, it was held that even though the percentage of acrylic fibre weight-wise was only 50 per cent of the yarn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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