TaxTMI 
TaxTMI 
1986 (3) TMI 178
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....p;    Wool         5% Acrylic fibre 20% Blend (b) Yarn containing -     Viscose         55% Wool 5%                  Acrylic fibre       40% Blend (c) Yarn containing -      Viscose         52% Polyester fibre15%                  Acrylic fibre      33% The appellants claimed the classification of these yarns under Item 18III(i) of the Central Excise Tariff Schedule (CET). However, the Assistant Collector, Central Excise rejected the claim and classified the goods under Item 18 III(ii), CET on the ground that the non-cellulosic fibre content of the yarn, exceeded 1/6th by weight of the fibre content. The appellants' claim was based on the contention that acrylic fibre was, for tariff purposes, always classed along with wool (reference explanation III to item No. 18),....
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.... a non-cellulosic fibre. In this connection, he drew our attention to Explanation III to item 18 wherein acrylic fibre was shown as other than non-cellulosic fibre. Acrylic fibre was itself classified along with wool under item No. 18B which read- "Woollen and acrylic spun yarn............... " Therefore, for tariff purposes, acrylic fibre was to be considered other than a non-cellulosic fibre. On this basis, the blends (a) & (b) did not contain any non-cellulosic fibre and the blend (c) contained less than 1/6th by weight of non-cellulosic fibre (polyester fibre : 15%). If the tariff itself treated acrylic fibre as other than noa-cellulosic fibre [see Explanation III (c) and (f) to item No. 18 ; 18B ; 18E, CET], then, it could not be treated as a non-cellulosic fibre for certain purposes lest contradictions result. In other words, acrylic fibre could not be treated at times as acrylic fibre and at other times as non-cellulosic fibre. Continuing, Shri Kohli referred to the decision of the Calcutta High Court in the Bengal National Textile Ltd. v. C.T.A. Pillai & Others. - 1979 ELT-(J 664) holding that acrylic fibre could not be considered as non-cellulosic. The Bombay High Co....
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....tended to tax both the types of spun yarns alike. 11. Much reliance was placed by Shri Kohli on explanation III to item 18. We have extracted the relevant portion earlier. This Explanation, as is obvious from the words used, has application only in the case of yarns in which two or more of the fibres specified in the Explanation [(c)-wool of acrylic fibre, or both and (d) man-made fibres of non-cellulosic origin other than acrylic fibre are the items relied upon by Shri Kohli] are equal in weight (emphasis supplied). The explanation provides a statutory guideline to ascertain the classification of such yarns. Admittedly, in none of the three blends in dispute before us, the constituent fibres are equal in weight. As such Explanation III has no application to the present blends. 12. It needs to be noted that wherever the tariff intends to exclude acrylic fibre from being considered as a non-cellulosic fibre, it says so specifically in so many words. Item 18E-"Non-cellulosic spun yarn", for e.g., is defined as "spun (discontinuous) yarn in which man-made fibres of non-cellulosic origin, other than acrylic fibre, predominate in weight and............". What is clear is that....
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....the aid of power- Explanation: Rayon and synthetic Fibres and Yarn shall be deemed to include : (i) Man-made fibres; (ii) Spun (discontinuous yarn containing not less than ninety per cent by weight of man-made fibres calculated on the total fibre content; (iii) Man-made filament (continuous) yarn ; (iv) Man-made metallic yam." The yarn in dispute contained 93% acrylic and 7% nylon. The Assistant Collector held that the yarn was made out of 100% synthetic staple fibre of non-cellulosic origin and charged it to duty at Rs. 15 per kg. under serial No. 2 (b)(i) of Notification No. 52/72 dated 17-3-1972 as against the assessee's claim under Sl. No. 2(b)(iv). The relevant parts of the notification read as follows :- "2 Yarn spun (a) wholly out of synthetic staple fibre of non-cellulosic origin other than acrylic fibre; or (b) partly out of the staple fibre aforesaid and partly any other fibre or fibres (including acrylic fibre) provided that the natural fibre content if any, of the yarn does not exceed 10% of its weight. If the non-cellulosic fibres content of it is (i) 50% or more Rs. 15.00 per kg. (ii) xx xx       ....