Classification of industrial nylon yarn under customs notification turns on product use and residuary benefit, not tyre-only capability.

Industrial nylon yarn capable of use both in tyres and in belting was not confined to the specific description "Nylon tyre yarn" under Serial No. 3 of Notification No. 38-Customs dated 1 March 1978. The term was not defined, and the product literature showed multiple applications, including conveyor belts, so a specific label could not be attached merely because the yarn could also be used in tyre manufacture. The notification was construed meaningfully and, unlike an earlier regime tied to actual end-use for belting, it did not impose an exclusive restrictive formulation. The yarn therefore qualified for the residuary benefit under Serial No. 8, subject to proof of end-use in belting to the satisfaction of the Assistant Collector.

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Issues: Whether industrial nylon yarn capable of use both for tyres and for belting for machinery was classifiable as "Nylon tyre yarn" under Serial No. 3 of Notification No. 38-Customs dated 01.03.1978, or was entitled to the residuary benefit under Serial No. 8.

Analysis: The term "Nylon tyre yarn" was not defined in the notification, and the material on record showed that the yarn could be used for tyres as well as for belting. The product literature described it as a versatile yarn with multiple applications, including conveyor belts. A specific label could not be attached to such yarn merely because it was capable of use in tyre manufacture. The earlier notification had expressly provided a concessional regime linked to actual end-use for belting, but the later notification did not contain such a restrictive or exclusive formulation. In these circumstances, the notification had to be construed in a meaningful way, and the yarn could not be denied the lower residuary rate merely because it was capable of use in tyres.

Conclusion: The yarn was not confined to the specific entry "Nylon tyre yarn" and was entitled to the residuary benefit under Serial No. 8, subject to proof of end-use in belting to the satisfaction of the Assistant Collector.

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