Classification of wool noils turned on trade description and process evidence, defeating duty under Tariff Item 68.

Goods emerging at the final combing stage of wool-top manufacture were identified as noils, meaning the shorter fibres separated from longer fibres during combing. The accepted trade and ISI descriptions supported classification as noils, while the record did not establish that the goods were scoured wool. The Collectorate trade notice also indicated that noils were not covered by Tariff Item 68, and the Department failed to show any contrary basis for dutiability. The goods were therefore treated as noils and not chargeable to duty under Tariff Item 68.

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Issues: Whether the goods cleared as Noils-I and Noils-II were classifiable as noils or as scoured wool falling under Tariff Item 68 of the Central Excise Tariff, and whether duty was chargeable on them.

Analysis: The goods emerged at the final stage of the wool-top manufacturing process, namely combing, and the evidence showed that noils are the shorter fibres separated from longer fibres during combing. The record did not establish that the goods were scoured wool; on the contrary, the accepted trade and ISI description supported their identification as noils. The Collectorate trade notice also indicated that noils were not covered by Tariff Item 68, and the Department did not show any contrary dutiability basis for noils.

Conclusion: The goods were held to be noils and not dutiable under Tariff Item 68; the departmental appeal failed.

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