Residuary exemption classification for versatile yarn turns on the notification's wording, not one possible end-use.

Imported nylon yarn and polyamide filament yarn used in machinery belting were treated as falling within the residuary serial of Notification No. 38/78-Cus. rather than the tyre-yarn entry. The Tribunal reasoned that exemption classification could not turn on isolating one possible end-use where the goods were versatile and capable of multiple applications, and that the residuary entry governed goods not specifically covered elsewhere. The same reasoning was followed from an earlier Tribunal view, and the appeals were allowed with consequential refund.

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Issues: Whether nylon yarn and polyamide filament yarn imported for use in manufacture of belting for machinery were classifiable under the residuary entry in Notification No. 38/78-Cus. dated 01.03.1978 and entitled to the lower rate of duty.

Analysis: The goods were accepted to be nylon yarn, but the denial of exemption was based on the view that they should be treated as nylon tyre yarn because they were also capable of use in tyres and V-belts. The Tribunal noted that the yarn was a versatile product with multiple applications and that classification could not be fixed by selecting only one possible use. The residuary entry applied to articles not specifically covered by the earlier entries, and the absence of any stay against the earlier Tribunal decision meant that the same reasoning could properly be followed.

Conclusion: The goods were held to fall under the residuary serial number and not under the tyre-yarn entry, and the appeals were allowed with consequential refund.

Ratio Decidendi: A versatile imported yarn cannot be classified for exemption purposes by isolating one possible end-use where the notification does not make end-use decisive, and a residuary entry applies when the goods are not specifically covered elsewhere.

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