Tariff classification of blended yarn turns on fibre composition, with waste-based claim rejected and department's classification upheld.

Evidence from seizure, cone and bag markings, the chemical examiner's report and the surrounding investigation established that the disputed blended yarn was composed of polyester fibre mixed with viscose or cotton. The claim that the RG 1 entries were only clerical mistakes and that the input was synthetic waste was rejected because the record did not substantiate a waste-based character. On that factual basis, the yarn was treated as man-made non-cellulosic fibre yarn and not as cellulosic or waste-based yarn, so the department's tariff classification was upheld. The demand, redemption fine and penalty were sustained and the appeal failed.

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Issues: (i) Whether the yarn covered by the disputed lots was manufactured from synthetic waste or from man-made non-cellulosic polyester fibre, and the correct tariff classification flowing from that finding.

Analysis: The evidence of seizure, the markings on cones and bags, the chemical examiner's report, and the surrounding investigation were accepted as showing that the yarn was composed of polyester fibre mixed with viscose or cotton. The contention that the entries in the RG 1 register were only clerical mistakes and that the input was synthetic waste was rejected. Synthetic waste was treated as distinct from fibre, but the record did not substantiate that distinction in the present goods. The yarn was therefore held not to fall within the entries applicable to cellulosic yarn or waste-based material, and was instead classifiable according to its fibre composition under the entry applicable to yarn containing man-made non-cellulosic fibre.

Conclusion: The yarn was correctly treated as manufactured from man-made non-cellulosic fibre and the classification adopted by the department was upheld against the assessee.

Final Conclusion: The demand, redemption fine, and penalty were sustained and the appeal failed.

Ratio Decidendi: Where the evidence establishes that blended yarn is manufactured from man-made non-cellulosic fibre and not merely synthetic waste, the yarn is classifiable according to the fibre content and cannot claim a lower tariff entry reserved for waste-based or cellulosic yarn.

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