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of <h1>Classification of Cellulosic Spun Yarn Upheld Under Excise Tariff</h1> The tribunal upheld the classification of cellulosic spun yarn under Item No. 18-III(2) of the Central Excise Tariff, dismissing the appeal by M/s. Soma ... Classification Issues: Classification of cellulosic spun yarn under Central Excise TariffDetailed Analysis:1. Classification of Cellulosic Spun Yarn: The appeal filed by M/s. Soma Textiles pertained to the classification of cellulosic spun yarn under the Central Excise Tariff. The appellants argued that the yarn should be classified under Item No. 18-III(1) instead of Item No. 18-III(2) as the non-cellulosic fiber content was claimed to be less than 1/6th by weight. However, upon testing, it was found that the non-cellulosic fiber content exceeded 1/6th by weight, leading to its classification under Item No. 18-III(2).2. Opportunity for Personal Hearing: The appellants contended that they were not given an opportunity for a personal hearing and raised concerns about the lack of specific details in the test report. However, the tribunal noted that the appellants were indeed provided with an opportunity for a personal hearing, which they confirmed in their communication. The tribunal found no merit in the argument that the hearing was not granted before passing the order.3. Validity of Test Results: The test results conducted on the yarn samples indicated that the non-cellulosic fiber content exceeded the permissible limit. The tribunal observed that the samples were tested twice, and the results were consistent in showing the non-cellulosic fiber content to be more than 1/6th when calculated on the total fiber content. The correctness of the test samples was not disputed by the appellants.4. Comparison with Textile Commissioner's Office Test: The appellants referenced test results from the Regional office of the Textile Commissioner, which revealed discrepancies in the fiber content markings on the yarn samples. However, the tribunal highlighted that the samples sent to the Textile Commissioner's office were not drawn in the presence of Central Excise Officers, raising doubts about the accuracy and relevance of those test results in determining the classification of the yarn.5. Applicability of Test Results: The appellants argued that the test results were erroneously applied to earlier clearances as well. The tribunal clarified that test results are used to classify excisable goods when relevant and representative of the samples. Continuous testing for each clearance is deemed impractical, especially when there are no changes in the manufacturing process or raw materials used by the appellants during the relevant period.6. Final Decision: Based on the evidence and arguments presented, the tribunal upheld the classification of the cellulosic spun yarn under Item No. 18-III(2) of the Central Excise Tariff. It affirmed the decision of the Collector of Central Excise (Appeals) and dismissed the appeal, finding no merit in the contentions raised by the appellants regarding the classification and testing procedures.This detailed analysis of the judgment concerning the classification of cellulosic spun yarn under the Central Excise Tariff highlights the key issues, arguments presented by the parties, and the tribunal's reasoning leading to the final decision to uphold the classification under Item No. 18-III(2).
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