Tariff classification of rayon yarn waste entitled it to concessional notification benefit under the same item.

Coning and godet waste of rayon yarn, being classifiable only under Tariff Item 18(1), was treated as covered by the same concessional scheme that applied to rayon and synthetic yarn under Notification No. 198/76 as amended by Notification No. 249/76. Because the waste had already been assessed under that tariff item and there was no separate sub-item excluding it, the incentive benefit was held admissible to the waste as well. The revision succeeded.

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Issues: Whether coning and godet waste of rayon yarn classifiable under Tariff Item 18(1) was entitled to the benefit of Notification No. 198/76 as amended by Notification No. 249/76.

Analysis: The relevant tariff entry covered rayon and synthetic fibres and yarn under Tariff Item 18(1), and there was no separate sub-item for the waste in question. The waste had been assessed under the same tariff item and had already attracted the concessional duty provided by Notification No. 53/72. Since Notification No. 198/76, as amended, extended the incentive scheme to rayon and synthetic yarn of above 1100 deniers falling under Tariff Item 18(1), and the waste was also classifiable only under that item, the benefit was held to be available to the waste as well.

Conclusion: The benefit of Notification No. 198/76, as amended by Notification No. 249/76, was held admissible to the coning and godet waste of rayon yarn; the revision succeeded.

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