Captive intermediate product duty upheld where nylon monofilament was marketable and tariff classification was already settled by precedent.

Nylon monofilament used captively in making nylon tufts was treated as a dutiable intermediate product because it was marketable and fell within the tariff classification already settled by binding precedent. The Tribunal relied on its earlier final ruling on synthetic monofilament and found no distinct ground to depart from that ratio. On that basis, it held that the duty demand on the captively consumed monofilament was legally sustainable and rejected the appeal.

---

---

Issues: Whether nylon monofilament manufactured intermediate product and captively consumed in the manufacture of nylon tufts was marketable and therefore dutiable, and whether the impugned demand was unsustainable in view of the Tribunal's earlier ruling on synthetic monofilament classification.

Analysis: The order under challenge was based on an earlier Tribunal decision which had already upheld the view that synthetic monofilament of the relevant description fell under the specified tariff sub-heading. The present appeal raised no distinct ground to dislodge that earlier determination. Following the binding ratio of the earlier final order, the Tribunal found no legal infirmity in the demand and in the confirmation of duty on the intermediate product used captively in the manufacture of nylon tufts.

Conclusion: The demand of duty on the nylon monofilament was sustained and the appeal was rejected.

Ratio Decidendi: An intermediate product used captively is dutiable where it is marketable and falls within the applicable tariff classification already settled by binding precedent.

---