Residuary tariff classification governs godet waste from rayon yarn manufacture, not item 18, on the Tribunal's analysis.

Godet waste arising in the manufacture of rayon yarn was held not to fall under item 18 of the Central Excise Tariff Schedule. The Tribunal treated the earlier Century Rayon decision as non-determinative on merits, because it only quashed the departmental order for lack of independent application of mind. It preferred the later Bombay High Court ruling in R.K. Synthetics & Fibres and related authorities, which classified similar waste outside item 18. The cellulosic or non-cellulosic character of the waste did not alter the classification result, so the residuary item 68 applied and the Revenue's challenge failed.

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Issues: Whether godet waste arising in the manufacture of rayon yarn was classifiable under item 18 of the Central Excise Tariff Schedule or under the residuary item 68.

Analysis: The Tribunal held that the earlier Bombay High Court decision in the Century Rayon matter did not finally determine the correct classification of the goods, because that decision quashed the departmental order for want of independent application of mind and did not adjudicate the classification issue on merits. The Tribunal preferred the later Bombay High Court ruling in R.K. Synthetics & Fibres and the connected line of decisions, which treated similar waste as not falling within item 18. The distinction between cellulosic and non-cellulosic waste was held not to alter the classification question. Since the subject godet waste was not covered by item 18 and no specific tariff entry otherwise applied, the residuary entry had to be invoked.

Conclusion: Godet waste was not classifiable under item 18 of the Central Excise Tariff Schedule and was correctly classifiable under item 68; the respondents succeeded on classification.

Final Conclusion: The Revenue's challenge failed, the lower authority's order in favour of the assessee was sustained, and the goods were directed to be reclassified under the residuary tariff item with consequential relief.

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