Customs exemption for viscose staple fibre denied where cupro bemberg staple fibre was held to be a different product.

Exemption under the customs notification for viscose staple fibre and polynosic staple fibre was denied because cupro bemberg staple fibre was treated as a different product, not covered by the notification. The Tribunal relied on the customs test report, the appellant's own material, and the manufacturer's certificate to find that cupro rayon was only in the same family as viscose in physical properties, but not identical to viscose itself. Earlier test reports favouring the assessee were not treated as conclusive. The Supreme Court found no error of law in that approach and upheld the rejection of the exemption claim.

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Issues: Whether Cupro Bemberg Staple Fibre imported by the appellant was exempt under the customs exemption notification issued under Section 25(1) of the Customs Act, 1962 for Viscose Staple Fibre and Polynosic Staple Fibre falling under Chapter 56 of the First Schedule to the Customs Tariff Act, 1975.

Analysis: The imported goods were tested as synthetic staple fibre of cellulose origin, but the Tribunal found that cupromonium fibre was a different variety from viscose fibre. It relied not only on the customs test report but also on the material produced by the appellant and the manufacturer's certificate, which showed that cupro rayon was only of the same family as viscose in physical property and not the same product. The notification was held to apply to viscose itself and not to the broader family of viscose-like fibres. The earlier test reports in favour of the appellant were not treated as conclusive, and the Tribunal's finding was held to suffer from no error of law.

Conclusion: The claim for exemption was rejected and the issue was answered against the assessee.

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