Classification of slub yarn by spinning process upheld under Heading 5606, not normal yarn under Heading 5506.

Slub yarn produced from polyester and viscose fibres through special mechanical stimulation by an electronic device was treated as a special yarn because the process created thick-and-thin features and imparted the slub effect during spinning. On that basis, the product was not regarded as normal yarn for classification under Heading 5506. The Tribunal accepted Revenue's view that the correct classification was under Heading 5606 of the Central Excise Tariff, and the contrary claim for Heading 5506 was rejected.

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Issues: Whether slub yarn manufactured by using a special electronic device was classifiable under Heading 5506 or under Heading 5606 of the Central Excise Tariff.

Analysis: The Tribunal noted that the yarn was manufactured from polyester and viscose fibres with special mechanical stimulation through an electronic device, which created thick and thin features and imparted the slub effect during spinning. On that basis, the yarn was not treated as a normal yarn but as a special yarn. The classification adopted by Revenue under Heading 5606 was therefore found to be correct and the contrary claim for Heading 5506 was not accepted.

Conclusion: The classification under Heading 5606 was upheld and the appeal was rejected.

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