Predominant by weight test governs mixed textile yarn classification; acrylic yarn with minor fibres fits the specific tariff entry.

Mixed textile yarn is to be classified by the textile material predominating by weight under Note 2(A) of Section XI. Where acrylic fibre is the predominant component and only small quantities of other synthetic or natural fibres are present, the yarn falls within sub-heading 5504.31 for acrylic or modacrylic staple fibre yarn produced out of waste or fibre produced out of such waste. The residual sub-heading 5504.39 applies only when the specific description is not met. On that basis, shoddy acrylic yarn containing minor admixtures was held classifiable under 5504.31, with the classification adopted by the assessee upheld.

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Issues: Whether shoddy acrylic yarn, containing acrylic fibre with small percentages of other synthetic and natural fibres, was classifiable under sub-heading 5504.31 of the Central Excise Tariff Act, 1985 or under the residual sub-heading 5504.39.

Analysis: Note 2(A) of Section XI required mixed textile articles to be classified as if consisting wholly of the textile material predominating by weight. The test reports showed acrylic fibre as the predominant component, with the presence of only small quantities of other fibres. Sub-heading 5504.31 covered yarn in which acrylic or modacrylic staple fibre predominated by weight and which was produced out of waste or fibre produced out of such waste. Since the yarn satisfied that description, the mere presence of small quantities of natural fibre did not justify shifting the classification to the residual entry 5504.39. The residual entry could apply only when the specific entries were not satisfied.

Conclusion: The yarn was correctly classifiable under sub-heading 5504.31 and not under sub-heading 5504.39; the classification adopted by the assessee was upheld.

Final Conclusion: The demand and penalty did not survive because the assessee succeeded on the tariff classification issue and the appeal was allowed.

Ratio Decidendi: For mixed textile goods, classification must follow the textile material predominating by weight, and a residual tariff entry cannot be invoked when the goods satisfy the terms of the specific sub-heading.

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