Predominant textile material rule governs mixed waste classification, so unsorted cotton waste was held non-dutiable.

Mixed textile waste generated in the manufacture of cotton dyed yarn and cotton blended yarn was classified by reference to the textile material predominating by weight, because the waste remained unsorted and consisted of mixed fibres. Applying the tariff rule for mixtures of textile materials, the Tribunal treated the waste as cotton waste under the cotton chapter. On that basis, the waste was held not to attract duty, and the demand failed in favour of the assessee.

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Issues: Whether the mixed waste generated in the manufacture of cotton dyed yarn and cotton blended yarn was classifiable with reference to the textile material predominating by weight, and whether duty could be demanded on such waste.

Analysis: The dispute turned on the nature of the waste arising from the second unit, where the waste was not segregated and remained mixed. The Tribunal followed its earlier decision in the assessee's own case and applied the tariff rule that goods consisting of a mixture of two or more textile materials are to be classified as if consisting wholly of the textile material that predominates by weight over the others. On that basis, the mixed waste was treated as cotton waste, falling under the chapter relating to cotton and not attracting duty.

Conclusion: The waste was classifiable by the predominant textile material and no duty was payable on it; the issue was decided in favour of the assessee.

Ratio Decidendi: Mixed textile waste is to be classified according to the textile material predominating by weight, and where such predominant material yields a non-dutiable classification, duty cannot be demanded.

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