Concessional duty for nylon yarn depends on denierage limits; departmental test and retest confirmed excess, defeating the claim.

The concessional duty notification applied only to nylon yarn within specified denierage limits for manufacture or repair of fishnets, subject to a 4% tolerance. Departmental testing showed the goods exceeded the prescribed limit, and the retest confirmed the excess. A later laboratory report relied on by the assessee did not prevail because the sample was not drawn in the presence of officers and the minor variation between government laboratory results did not discredit the departmental evidence. On that basis, the assessee failed to establish eligibility for the concession and the duty demand remained confirmed.

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Issues: Whether the assessee was entitled to the concessional rate of duty under the notification in respect of nylon yarn when the departmental test reports showed denierage above the prescribed limit and the retest confirmed the same.

Analysis: The concessional notification covered yarn of specified denierages for manufacture or repair of fishnets, subject to a 4% tolerance in denierage. The sample drawn by the department showed denierage higher than the prescribed limit, and the retest also confirmed the excess. The assessee relied on a separate test report from another laboratory, but that sample had not been drawn in the presence of officers. The difference between the two Government laboratory results was only minor and did not displace the departmental evidence.

Conclusion: The assessee failed to establish entitlement to the concession, and the demand sustained by the lower authority was ly upheld.

Final Conclusion: The appeal failed and the duty demand on the disputed denierage remained confirmed.

Ratio Decidendi: Where departmental testing, supported by retest, establishes that the goods fall outside the prescribed tolerance limit, a later private or independently obtained report will not override the departmental evidence absent reliable basis to discredit it.

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