Carded wool classification under the wool sub-heading upheld, with exemption coverage confirmed under the notification.

Carded gilled sliver consisting of more than 50% wool by weight was classifiable as carded wool under sub-heading 5102.11, not under the residual non-wool sub-heading 5102.90, because Heading 51.02 distinguished wool goods from goods other than wool and reserved 5102.90 for tops and similar goods not of wool. As the product was admitted to be carded wool and not combed wool, it also fell within Sl. No. 2 of Notification No. 50/87-C.E., which covered carded wool. The adjudicating authority's classification was therefore upheld and the Revenue challenge failed.

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Issues: Whether carded gilled sliver containing more than 50% wool by weight was correctly classifiable under sub-heading 5102.11 instead of sub-heading 5102.90, and whether it was covered by Notification No. 50/87-C.E. dated 1-3-1987.

Analysis: The tariff scheme distinguished between goods of wool and goods other than wool under Heading 51.02. Carded wool fell under sub-heading 5102.11, while carded and combed wool fell under sub-heading 5102.12. Sub-heading 5102.90 was confined to tops and similar goods which were not of wool. Since the goods in question were admittedly carded slivers of wool and were not combed, they fell within sub-heading 5102.11. Sl. No. 2 of the notification table also covered carded wool.

Conclusion: The classification adopted by the adjudicating authority was correct and the Revenue's challenge failed.

Final Conclusion: The appeal was rejected, leaving the classification in favour of the assessee and affirming coverage under the notification.

Ratio Decidendi: Where tariff entries expressly classify carded wool separately from non-wool goods, an admitted carded wool product cannot be placed under the residual non-wool sub-heading, and exemption coverage must follow the classification.

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