Jute fabric classification: concessional duty cannot be denied merely because goods are labelled poly jute fabrics.

Poly jute fabrics classifiable under sub-heading 5306.29 as jute fabrics were treated as eligible for the concessional benefit of Notification No. 56/90, because predominance of jute placed them within the description of jute fabrics. The mere use of the label "poly jute fabrics" was not sufficient to deny the exemption. The same reasoning had already been applied to poly jute bags made from the same fabrics, following the Calcutta High Court decision in Naffar Chandra Jute Mills Ltd. On that basis, the benefit of the notification was held available and the Revenue's appeal was rejected.

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Issues: Whether poly jute fabrics classifiable under sub-heading 5306.29 as jute fabrics were entitled to the concessional benefit of Notification No. 56/90.

Analysis: The dispute turned on whether the benefit of the notification, which extended concessional duty to jute fabrics, could be denied merely because the goods were described as poly jute fabrics. The goods were classified under sub-heading 5306.29 as jute fabrics on account of the predominance of jute. A similar issue concerning poly jute bags made from the same fabrics had already been resolved in favour of the assessee by following the Calcutta High Court decision in Naffar Chandra Jute Mills Ltd., and the same reasoning applied here.

Conclusion: The benefit of Notification No. 56/90 was available to the poly jute fabrics, and the Revenue's appeal was rejected.

Ratio Decidendi: Where goods are classifiable as jute fabrics on account of the predominance of jute, exemption intended for jute fabrics cannot be denied merely because the goods are described as poly jute fabrics.

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