Glass filament yarn qualifies as glass fibre yarn under the exemption notification, securing CV duty relief.

Notification No. 87/76-C.E. was construed to exempt yarn spun wholly out of glass fibre, and the expression "glass fibre" was read broadly to include continuous glass filaments as well as staple fibre. On that interpretation, the process of spinning applied equally to yarn made from glass filaments, and the exemption was denied only where glass strand was blended with polyester, nylon or other fibres. Yarn made wholly from glass filaments therefore satisfied the notification condition and qualified for exemption from CV duty.

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Issues: Whether glass filament yarn is covered by the expression "yarn spun wholly out of glass fibre" in Notification No. 87/76-C.E. dated 16-3-1976 and is therefore entitled to exemption from CV duty.

Analysis: The expression "glass fibre" was taken in a wide sense to include glass filaments as well as staple fibre. The process of converting glass strands into yarn involved spinning in both cases, whether the fibre was discontinuous staple fibre or continuous filament. The notification was construed as exempting yarn spun wholly out of glass fibre, while excluding only yarn made from a blend of glass strand with polyester, nylon or other fibres. Since the impugned goods were wholly made of glass filaments, they satisfied the notification condition.

Conclusion: The glass yarn was held to be covered by the exemption notification and was exempt from CV duty.

Ratio Decidendi: For exemption under the notification, glass fibre includes continuous glass filaments, and yarn made wholly from such filaments is treated as yarn spun wholly out of glass fibre.

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