Residuary tariff classification governed blended yarn that did not fit specific excise entries, requiring duty reworking

Blended yarn of the specified composition was treated as falling under the residuary tariff entry because it did not fit the specific classifications in Item 18(III)(ii) or Item 18E of the First Schedule to the Central Excises and Salt Act, 1944. The same composition-based reasoning had been applied in an earlier batch involving the same assessee, and that approach was followed again here. The practical effect was that duty had to be recomputed on the basis of Item 68, with recovery confined to the reassessed amount.

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Issues: Whether blended yarn of the specified composition was classifiable under Item 18(III)(ii), Item 18E, or the residuary Item 68 of the First Schedule to the Central Excises and Salt Act, 1944.

Analysis: The subject yarn had already been examined in an earlier batch of appeals involving the same appellants, where the composition of the blended yarn was considered and it was held to fall under the residuary tariff entry. Following that determination, the same reasoning was applied to the present appeals. The decisive question was therefore the proper tariff classification of the blended yarn on the basis of its composition, and the residuary entry was treated as the correct classification.

Conclusion: The blended yarn was correctly classifiable under Item 68 of the First Schedule to the Central Excises and Salt Act, 1944, and not under Item 18(III)(ii) or Item 18E.

Final Conclusion: The assessee succeeded on classification, with the duty demand to be reworked on the basis of Item 68 and recovery confined to the re-assessed amount as directed.

Ratio Decidendi: Where blended yarn does not fall within the specific tariff entries considered, it is classifiable under the residuary item applicable to the First Schedule.

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