Residuary tariff classification for blended yarn applied where the product did not fit the specific textile entry.

Blended yarn containing polyester, viscose and silk was analysed for tariff classification under the Central Excise Tariff. The governing Supreme Court ruling on similar blended yarn had already held that such goods did not fall within Tariff Item 18-III(ii) or Tariff Item 18-E and were instead classifiable under the residuary Tariff Item 68 for goods not elsewhere specified. Applying that reasoning, the classification under Tariff Item 18-III(ii) could not be sustained and the product was treated as falling under Tariff Item 68.

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Issues: Whether the blended yarn manufactured by the assessee was classifiable under Tariff Item 18-III(ii) or, in the alternative, Tariff Item 68 of the Central Excise Tariff.

Analysis: The blended yarn contained polyester, viscose and silk. The applicable classification question had already been settled by the Supreme Court in respect of similar blended yarn. That ruling held that such yarn did not fall under Tariff Item 18-III(ii) or Tariff Item 18-E and was correctly classifiable under the residuary Tariff Item 68 for goods not elsewhere specified. As the same reasoning applied to the present goods, the impugned classification could not be sustained.

Conclusion: The blended yarn was held classifiable under Tariff Item 68 of the Central Excise Tariff and not under Tariff Item 18-III(ii).

Final Conclusion: The classification order was set aside and the appeal succeeded with consequential relief according to law.

Ratio Decidendi: Where blended yarn does not answer the specific tariff description relied upon, it is classifiable under the residuary entry for goods not elsewhere specified.

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