Blended yarn exemption under Notification No. 6/2002 upheld where evidence showed actual composition below the disqualifying threshold.

Entitlement to nil rate of duty under Notification No. 6/2002 for blended yarn turned on the actual composition of the goods and the surrounding evidence, not merely the invoice description. Although the invoice showed a 70:30 blend, the purchase order, laboratory test reports and the parties' conduct supported the conclusion that the yarn was intended to be cleared as exempt and that the polyester content remained below the disqualifying threshold. The 70:30 description, though ordinarily significant, did not override the evidence establishing exemption eligibility. The appellant was therefore entitled to the exemption.

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Issues: Whether the appellant was entitled to nil rate of duty under Notification No. 6/2002 for blended yarn, notwithstanding the invoice description showing the blend as 70:30.

Analysis: The determining factor was the actual composition of the yarn and the surrounding evidence showing the parties' intention to clear the goods as exempt. The invoices, purchase order, and laboratory test reports indicated that the yarn was intended to qualify for exemption and that the test results obtained at the buyer's end were not manipulated for the purpose of availing the benefit. The record also showed that the buyer was a cooperative federation and that the exemption was meant to operate in such a transaction. In these circumstances, the mention of 70:30 in the invoice, though normally fatal, did not displace the evidence that the polyester content was below the disqualifying threshold.

Conclusion: The appellant was held entitled to the exemption, and the appeal succeeded.

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