Interpretation of notification entry for nylon filament yarn supported a prima facie case and justified stay of the appellate order.

Imported nylon filament yarn described in the Bills of Entry as deniers in multiples of 210 fell within the notification entry attracting the higher concessional CVD rate applicable to nylon filament yarn of 210 deniers or in multiples thereof. The appellate interpretation that "multiples" qualified filament yarn rather than denierage was found incorrect, and the description of the goods supported application of the specific tariff category. On that basis, a strong prima facie case was made out for stay, and operation of the impugned order was stayed.

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Issues: Whether the appellate order granting the benefit of Notification No. 5/06-C.E. dated 01-03-2006 and the concessional rate of CVD to the imported goods called for stay of operation.

Analysis: The imported goods were described in the Bills of Entry as nylon filament yarn of various deniers in multiples of 210. The tariff entry in the notification distinguished between goods other than nylon filament yarn, which attracted 4%, and nylon filament yarn of 210 deniers or in multiples thereof, which attracted 8%. The description of the goods indicated that the latter category applied, and the interpretation adopted in the appellate order treating "multiples" as qualifying filament yarn rather than denierage was found to be incorrect. On that basis, the applicant established a strong prima facie case for stay.

Conclusion: The operation of the impugned order was stayed and the application was allowed.

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