Monofilament yarn exemption turns on harmonious construction, and cut-length nylon filament still qualifies under the notification.

Nylon monofilament cleared in hanks or cut lengths was treated as monofilament yarn for exemption under Notification 5/98. The interpretation turned on harmonious construction: the tariff heading's use of "monofilament" could not make the notification's wording "monofilament yarn" redundant, and the explanatory notes showed that cut lengths did not remove the goods from the relevant tariff heading. On that basis, continuous-length filament was not required for exemption, and the goods were held eligible. The issue of denier specification was remanded for fresh adjudication.

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Issues: Whether nylon monofilament cleared in hanks or cut lengths was classifiable as "monofilament yarn" and entitled to the exemption under entry 119 of the table to Notification 5/98.

Analysis: The exemption entry covered nylon monofilament yarn falling under Heading 5404.10. Although the heading itself used the word "monofilament", the notification referred to "monofilament yarn". The Court applied a harmonious construction and held that the heading could not be read in a manner that made the words of the exemption redundant. The explanatory notes showed that monofilament remained within the heading even when cut into short lengths, and the form in which the goods were cleared did not take them outside the scope of the tariff heading. The Court therefore rejected the view that only continuous-length filament could qualify as yarn for the purpose of the notification.

Conclusion: The goods were entitled to the exemption as monofilament yarn under the notification, in favour of the assessee. The matter relating to denier specification was remanded for adjudication.

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