Classification of cabled yarn as sewing thread failed where factual findings showed use in weaving, preserving exemption entitlement.

Cabled or multiple yarn with "S" twist was not treated as sewing thread where the evidence showed it was used for weaving fabric rather than for sewing. The departmental argument that the pre-23-7-96 definition of sewing thread could cover such yarn did not override the concurrent factual findings of the original authority and the Commissioner (Appeals). As no material was produced to show those findings were erroneous, the exemption under Notification No. 35/95-CE remained available and the denial of exemption failed.

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Issues: Whether cabled or multiple yarn with "S" twist was classifiable as sewing thread so as to deny exemption under Notification No. 35/95-CE dated 16-3-95.

Analysis: The original authority and the Commissioner (Appeals) relied on correspondence with customers and found that the yarn was used for weaving fabric and not as sewing thread. The departmental contention that the pre-23-7-96 definition of sewing thread could cover yarn with "S" twist did not dislodge those concurrent factual findings. No material was produced to show that the factual conclusion that the goods were meant for use in weaving was erroneous.

Conclusion: The yarn was not to be treated as sewing thread for the purpose of denying the exemption, and the assessee remained entitled to the benefit of the notification.

Final Conclusion: The appeal failed because the concurrent factual findings in favour of exemption were left undisturbed.

Ratio Decidendi: Concurrent factual findings that goods were used in weaving and not as sewing thread will justify grant of exemption where no contrary evidence is produced to rebut those findings.

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