Exemption for cotton-based textile goods denied where nonwoven felt fabrics contained substantial non-cotton fibres.

Exemption under Notification No. 29/2004-CE, as amended, was confined to Chapter 56 goods made of cotton and not of other textile materials. The nonwoven felt fabrics at issue contained only 56% cotton, with substantial acrylic, polyester, wool, nylon and viscose content, so they did not satisfy the notification condition. The dispute concerned eligibility to exemption, not tariff classification, and the General Rules of Interpretation could not be used to extend exemption beyond the notification wording. Following the earlier decision in the appellant's own case on the same product, the exemption claim failed.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 29/2004-CE, as amended by Notification No. 07/2012-CE, for nonwoven felt fabrics falling under Central Excise Tariff Heading 5602.

Analysis: The exemption applied only to goods of Chapter 56 made of cotton and not of any other textile material. The tested products contained 56% cotton along with substantial quantities of acrylic, polyester, wool, nylon and viscose. The dispute was about eligibility to the exemption notification, not classification, and the General Rules of Interpretation could not be used to confer exemption where the goods were not made wholly of cotton. The earlier decision in the appellant's own case on the same product and notification was followed.

Conclusion: The appellant was not entitled to the exemption notification and the claim failed.

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