Strict construction of exemption notification allowed blended yarn with polyester and viscose to qualify for duty relief.

A blended yarn made of 65% polyester staple fibre and 35% viscose staple fibre, with no other textile material, was treated as falling within the exemption entry for yarn of polyester staple fibre containing cotton, ramie or artificial staple fibre, or any combination of those fibres, where polyester content is below 70% by weight. The text emphasises that cotton is not a mandatory constituent, and the disjunctive wording permits the specified fibres in combination. It also notes that exemption notifications must be construed strictly according to their language, and that a wider limitation cannot be imported from another entry. On that reading, denial of exemption was unsustainable.

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Issues: Whether blended yarn consisting of 65% polyester staple fibre and 35% viscose staple fibre, without any other textile material, was covered by Sl. No. 113(c) of Notification No. 4/97-C.E. and the corresponding entry in Notification No. 5/98-C.E., so as to qualify for exemption.

Analysis: The relevant entry covered yarn of polyester staple fibre containing cotton, ramie or artificial staple fibre, or any one or more of those fibres, provided it did not contain any other textile material and the polyester staple fibre content was less than 70% by weight. The wording did not require cotton as an invariable constituent. The punctuation and use of the disjunctive expression showed that the yarn could contain cotton, ramie, artificial staple fibre, or a combination of these fibres. The interpretation adopted by the original authority introduced words into the notification and read a limitation that was not expressed. Exemption notifications must be construed strictly according to their text, and one entry cannot be expanded by importing meaning from another entry.

Conclusion: The blended yarn manufactured by the appellant fell within the exemption entry. The denial of exemption was unsustainable.

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