Tolerance allowance in textile composition testing applied to mixed fabrics, preserving exemption where polyester content slightly exceeded the limit.

A 2.5% tolerance allowance recognised in Board guidance was held applicable when determining polyester content in mixed fabrics for exemption under Notification No. 254/87-CX. The earlier view that the allowance was confined to rayon or artificial silk was rejected as too narrow, because the same practical rationale applied to textile composition testing generally, including marginal testing variation and uneven yarn composition. On that basis, polyester content marginally above 70% could still qualify for the concessional treatment, and the denial of exemption was set aside.

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Issues: Whether the 2.5% tolerance allowed under the Board's letter could be applied while determining polyester content in mixed fabrics for the purpose of availing the exemption under Notification No. 254/87-CX.

Analysis: The dispute turned on whether polyester content marginally above 70% could still qualify for the concessional rate by applying the tolerance allowance recognized by the Board's letter. The earlier understanding that the allowance was confined to rayon or artificial silk was found to be erroneous. The tolerance principle had already been accepted in prior decisions as a practical safeguard against marginal test variations and unevenness in yarn composition, and its application was not limited to rayon or artificial silk where the same reasoning governed mixed fabrics.

Conclusion: The tolerance allowance was applicable to polyester content as well, and the fabrics in question were entitled to the exemption benefit.

Final Conclusion: The impugned order denying the concession was set aside and the appeal succeeded.

Ratio Decidendi: A tolerance allowance recognised for textile composition testing may be applied to mixed fabrics for exemption classification when the statutory or administrative text does not validly confine it to a narrower fibre category.

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