Mixed-fibre yarn duty must reflect traded moisture content, not oven-dry laboratory composition, before reassessment.

Mixed-fibre yarn duty was required to be assessed on the fibre content of the goods in their traded commercial condition, not on laboratory results taken on an oven-dry basis. Accepted technical material showed normal moisture regain for wool, terene and rayon, so the dry-test weights had to be adjusted by the appropriate moisture content before determining duty. On that corrected basis, the petitioners' contention was accepted and the earlier appellate order was set aside, with the matter remitted for fresh adjudication on the true fibre composition.

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Issues: Whether the duty on mixed-fibre yarn was to be assessed on the oven-dry fibre content recorded in the petitioners' laboratory tests or on the fibre content in the yarn as actually traded after adding the normal moisture regain values.

Analysis: The recorded test results were on an oven-dry basis, whereas the yarn in commercial condition contained absorbed moisture as well as the dry fibres. The accepted technical material showed normal moisture regain for wool, terene and rayon. Duty was required to be levied on the goods in the condition in which they were traded, not on their laboratory-derived oven-dry composition.

Conclusion: The petitioners' contention was accepted, and the duty was held to be payable on the fibre content after adding the appropriate moisture regain values to the oven-dry weights.

Final Conclusion: The Board's order-in-appeal was set aside and the matters were sent back for fresh adjudication on the corrected basis of fibre composition.

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