Tariff classification of metallised yarn turned on whether it was made from man-made fibres, with Item 15A(2) applying instead.

Metallised yarn made by cutting imported metallo-plastic films into fine lengths was held classifiable under Item 15A(2) of the Central Excise Tariff rather than Item 18. The reasoning followed prior High Court and Supreme Court views that the product was not manufactured out of man-made fibres, so it could not be treated as synthetic yarn under Item 18. On that basis, the competing classification under Item 18 was rejected and the appeal succeeded.

---

---

Issues: Whether metallised yarn manufactured by cutting imported metallo-plastic films into fine lengths was classifiable under Item 18 of the Central Excise Tariff or under Item 15A(2) of the Central Excise Tariff.

Analysis: The product had earlier been considered in the light of the Gujarat High Court decision and the later orders of the Supreme Court, both of which supported the view that metallised yarn was not manufactured out of man-made fibres. The Tribunal noted that the Supreme Court had agreed with that reasoning and had dismissed the appeals on the point. In that position, the competing tariff entry treating the goods as synthetic yarn under Item 18 could not be sustained.

Conclusion: The goods were correctly classifiable under Item 15A(2) and not under Item 18 of the Central Excise Tariff, and the appeal succeeded.

Ratio Decidendi: Where metallised yarn is not manufactured out of man-made fibres, it falls outside Item 18 and is classifiable under Item 15A(2) of the Central Excise Tariff.

---