Soft waste from yarn manufacture not classifiable under sub-heading 5503.20; assessee's classification claim succeeded.

Soft waste arising during the manufacture of artificial staple fibre yarn was held not classifiable under sub-heading 5503.20, because the Tribunal applied its earlier ratio that such yarn waste does not fall within sub-heading 5503.19/5503.20. On that basis, the competing classification under sub-heading 5502.00 was accepted, the rejection of sub-heading 5503.20 was sustained, and the assessee obtained consequential relief.

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Issues: Whether soft waste arising during manufacture of artificial staple fibre yarn was classifiable under sub-heading 5503.20 or under sub-heading 5502.00.

Analysis: The Tribunal followed its earlier decision holding that soft waste arising during the manufacture of yarn is not classifiable under sub-heading 5503.19/5503.20. Applying that ratio, the item in dispute could not be placed under sub-heading 5503.20.

Conclusion: The classification under sub-heading 5503.20 was rejected and the assessee's claim succeeded.

Final Conclusion: The appeal was allowed and the assessee obtained consequential relief.

Ratio Decidendi: Soft waste arising during the manufacture of yarn is not classifiable under sub-heading 5503.20.

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