Predominant fibre test governs classification of mixed textile waste, placing cotton-dominant waste under Chapter 52 and outside duty.

Mixed textile waste arising from the manufacture of cotton dyed yarn and cotton blended yarn is to be classified by the predominating fibre under the relevant tariff note for Chapters 50 to 55. Where cotton predominates by weight over the other textile material, the waste is treated as cotton waste under Chapter 52 and not as waste of cotton blended yarn under Chapter 55. The fact that the waste was not separately segregated does not change its tariff classification. On that basis, the waste is not liable to duty.

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Issues: Whether waste arising from the manufacture of cotton dyed yarn and cotton blended yarn in the second part of the unit was classifiable as cotton waste under Chapter 52 of the Central Excise Tariff Act, 1985 and therefore not liable to duty, or as waste of cotton blended yarn under Chapter 55 and liable to duty.

Analysis: The waste generated in the manufacturing process was a mixed waste of textile materials. The governing tariff note provided that goods classifiable in Chapters 50 to 55 made of a mixture of two or more textile materials are to be treated as consisting wholly of the textile material that predominates by weight over any other single textile material. On the facts recorded, cotton predominated over the other fibre in the waste. The mixed waste therefore had to be classified according to the predominating material and could not be subjected to duty as waste of blended yarn merely because the waste was not separately segregated.

Conclusion: The waste was classifiable under Chapter 52 of the Central Excise Tariff Act, 1985 and was not liable to duty.

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