Tariff classification by true character, not manufacturing process, kept yarn under the correct heading and rejected monofilament classification.

The Supreme Court reaffirmed that tariff classification turns on the product's true character and the specific heading that fits it, rather than on the manufacturing process or raw material used. On the facts, the assessee's product was treated as yarn, not synthetic monofilament, because the dispute related to filament yarn and the plant output exceeded the dimensional limit relevant to the monofilament heading. Chapter Heading 54.04 was therefore held to apply, while Chapter Heading 54.06 was held inapplicable. The departmental challenge to the assessee's classification failed, and the assessee's tariff treatment was sustained.

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Issues: Whether the product manufactured by the assessee was classifiable under Chapter Heading 54.04 as artificial filament yarn or under Chapter Heading 54.06 as synthetic monofilament of 60 deniers or more.

Analysis: The product had to be classified by distinguishing between monofilament and yarn. The Court relied on the conceptual difference between nylon chips, monofilament, and yarn, and noted that the dispute related to yarn rather than filaments. Chapter Heading 54.04 covered artificial filament yarn, while Chapter Heading 54.06 applied to synthetic monofilament of 60 deniers or more and of a specified dimensional limit. The finding that the plant produced filament in excess of 1 mm also negatived application of Chapter Heading 54.06.

Conclusion: The product was correctly classified under Chapter Heading 54.04 and not under Chapter Heading 54.06, and the classification adopted by the assessee was upheld.

Final Conclusion: The departmental challenge to the tariff classification failed, and the assessee's classification was sustained.

Ratio Decidendi: Where the dispute is between yarn and monofilament, the product must be classified according to its true character and the tariff description that specifically fits that character; a heading for monofilament cannot be applied to yarn merely because of the manufacturing process or material used.

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