Polyester chips classification under exemption entry: specific resin description prevails despite removal from residual coverage.

Polyester chips imported from Yugoslavia were treated as falling within the specific exemption entry for "polyester resins" under Notification No. 36/83-Cus., as amended, because the amendment removed only their coverage under the residual entry and did not exclude them from the specific resin classification. The stated reasoning was that textile-grade polyester chips are a species of synthetic resin, so their scientific and commercial character supported inclusion in the broader resin entry. On that basis, concessional customs duty and refund relief were said to follow, and the impugned order was set aside with consequential relief.

---

---

Issues: Whether polyester chips imported from Yugoslavia were covered by the entry "polyester resins" in Notification No. 36/83-Cus. as amended by Notification No. 219/83-Cus., and were therefore entitled to the concessional rate of customs duty and refund.

Analysis: The amended notification excluded polyester chips from the separate residual entry, but the decisive question remained whether such chips, being a form of polyester resin, fell within the specific entry for polyester resins. Reliance was placed on the earlier judicial view that polyester chips of textile grade are covered by the broader category of artificial or synthetic resins. On that reasoning, the amendment was treated as withdrawing only the larger concession earlier attached to the separate entry for polyester chips, not as excluding polyester chips from the specific polyester resins entry.

Conclusion: Polyester chips were held to be covered by the entry "polyester resins" and the appellants were entitled to the concessional duty treatment and refund relief.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief to the appellants.

Ratio Decidendi: Where goods are scientifically and commercially a species of a specifically named resin, exclusion from a residual entry does not prevent their classification under the specific resin entry in an exemption notification.

---