Central Excise classification of yarn upheld under Heading 55.05 where inputs were not synthetic staple fibre.

Classification of yarn made from viscose staple fibre and non-cellulosic soft waste turned on whether the inputs could be treated as synthetic staple fibre. The Tribunal found that they could not, and on that basis placed the yarn under Heading 55.05 of the Central Excise Tariff. That view was consistent with the departmental stance and Board Circular No. 23/90 dated 1-11-1990, so no interference was called for. The proper classification was therefore sustained under Heading 55.05 rather than Heading 55.06, and the revenue's appeal failed.

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Issues: Whether yarn manufactured from viscose staple fibre and non-cellulosic soft waste (polyester waste) was classifiable under Heading 55.05 or Heading 55.06 of the Central Excise Tariff.

Analysis: The disputed classification turned on whether the raw materials used in the yarn could be treated as synthetic staple fibre. The Tribunal had found that they were not synthetic staple fibre and, on that basis, classified the yarn under Heading 55.05. That view was accepted by the revenue, and the Board's Circular No. 23/90 dated 1-11-1990 also adopted the same classification. In these circumstances, no interference was called for.

Conclusion: The proper classification was under Heading 55.05, not Heading 55.06, and the revenue's appeal failed.

Ratio Decidendi: Where the departmental view and a binding circular support the Tribunal's classification, and the goods do not answer the description of the rival heading, the Tribunal's classification will be sustained.

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