Sewing thread treated as yarn for exemption purposes; later express mention held clarificatory and benefit applied.

Sewing thread was treated as a variety of yarn for tariff purposes, so the exemption under Notification No. 17/94 could not be denied on the ground that sewing thread was later expressly mentioned. The tariff entry and notification were read consistently, and the later inclusion of the words "including sewing thread" was regarded as clarificatory rather than introducing a new benefit. On that basis, the notification benefit extended to sewing thread and the Revenue's objection failed.

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Issues: Whether sewing thread was covered within the expression "yarn" for the purpose of Notification No. 17/94 and whether the subsequent inclusion of "including sewing thread" made the earlier notification inapplicable.

Analysis: Sewing thread is a variety of yarn and retains its character as yarn for tariff purposes. The tariff entry itself treated yarn as including sewing thread, and the later amplification of the description by express words was only to remove ambiguity. Where the notification and the tariff treatment are consistent, the benefit attached to yarn cannot be denied merely because sewing thread was later expressly mentioned. The subsequent notification was therefore treated as clarificatory in nature.

Conclusion: The benefit of the notification was available to sewing thread. The objection of the Revenue was rejected and the appeal succeeded in favour of the assessee.

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