1990 (7) TMI 231

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....' for short) to the Customs Tariff Act, 1975 with the benefit of the concessional rate of duty in terms of Serial No. 8 of the Customs Notification No. 38/78 dated 1-3-1978, i.e. in the residual category. It was contended that since the yarn was going to be used by them exclusively in the manufacture of belting for machinery, the yarn was not for use in the manufacture of tyres and so Entry No. 3 in the notification covering "Nylon tyre yarn" was not applicable to the goods. It appears that the appellants agreed during the hearing before the Asstt. Collector that they were not in a position to adduce any evidence to show that the yarn was in any way different from nylon tyre yarn in terms of specifications, physical constants or chemical co....

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....n under the Schedule, as was in excess of 40% ad valorem subject to execution of a bond for the differential duty involved on the quantity of yarn not proved to have been so used. This notification was rescinded on 12-11-1986 by Notification No. 460/86. 4. On 1-3-1978, the Central Govt. had issued another Notification No. 38-Customs dated 1-3-1978 which conferred varying quanta of duty exemption on several specified types of man-made yarn. This notification as amended upto 18-6-1986 (the amending notification being 350/86-Customs dated 18-6-1986) is the one relevant for the present dispute. The two entries which call for consideration are :- Sl. No. 3 - "Nylon tyre yarn" Sl. No. 8 - "All articles other than those specified in Sl. N....

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....ture of tyres. Therefore, the specific entry "Nylon Tyre Yarn" should be preferred to the residuary entry. If a yarn was suitable for manufacture of tyre, it should be taxed accordingly. Any consideration of intended end-use etc. was irrelevant. He placed reliance in this context on the Supreme Court judgment in the case of Hemraj  Gordhandas -1978 (2) E.L.T. (J-350). 7. We have carefully considered the submissions made before us and perused the record. No definition of the term "Nylon Tyre Yarn" had been placed before us nor, as Shri Kapoor has pointed out, the Bureau of Indian Standard Glossary of Textile Terms mentions such a term. The Glossary, however, defines the term "Tyre-Cord" as cabled yarn made from natural or synthetic f....

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....been clearer in its intent. If the intention was to charge yarn capable of both uses to the same rate of duty, the entry could have been "Nylon yarn of 840 Deniers and above" or whatever the demarcating line. But we do feel that it could not have been the intention of the notification to deny the lower rate of duty applicable to Serial No. 8 of the Notification to yarn capable of, but not for, use in the manufacture of tyres. In taking this view, we are not reading any intendment into the notification which is impermissible in the light of the Supreme Court's judgment in the Hemraj Gordhandas case (supra). Faced with a situation as in the present case, what we are trying to do is to construe the notification in a meaningful way because, as ....