TaxTMI 
TaxTMI 
1992 (3) TMI 208
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.... 1944 in respect of 4542 kgs. of Shoddy Acrylic yarn, 728 kgs. in process and 797.5 kgs. of such yarn contained in 275 blankets. He has also imposed a penalty of Rs. 2,000/- on the appellants under Rule 173Q of the Central Excise Rules, 1944. 2. The brief facts of the case are that the appellants are manufacturers of Shoddy Acrylic yarn. They were issued with a show cause notice dated 30-9-1986 by which it was alleged that the assessee had filed a letter dated 30-4-1986 to the Supdt. of Central Excise Range II, Dewas about their proposed manufacture of Shoddy Acrylic yarn. Shoddy acrylic blankets. Shoddy Acrylic fabric. It stated that the Range Superintendent paid a visit to the premises of the appellants' factory in response to these le....
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....and hence, the same merited classification under sub-heading 5504.39 of CET. The assessee contended that the presence of fibres other than Shoddy in the acrylic predominating yarn, does not bar classification of the product in question under sub-heading 5504.31. It was further contended that by a clear interpretation of Section 2(A) of Section II1 (Textiles and textile articles) of the CET Act, 1985, the manufactured item would continue to fall under sub-heading 5504.31 of CET, 1985. 3. The learned Addl. Collector after giving personal hearing, has noted the results of the chemical examination of the samples of yarn drawn and sent for the test. The test revealed the following results - Acrylic fibre (1) (62% to 83%) &n....
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....res should predominate by weight with no bar on other synthetic staple fibres being present. Thus the yarn would either be classifiable under sub-heading 5504.31 or 5504.32 or 5504.39. It could not be classifiable under sub-heading 5504.32 owing to the presence of cellulosic and non-cellulosic fibre. Similarly, owing to the presence of such natural fibres it cannot merit classification under 5504.31 because under this sub-heading the yarn, in addition to acrylic fibre, has got to have only other synthetic fibre. Consequently, the yarn in question is classifiable under 5504.39." 4. The appellants are aggrieved with this order. It is contended by the appellants that the only requirement of sub-heading 5504 of the tariff that acrylic or sho....
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....d the predominance was only acrylic fibre. Therefore, by applying Note 2A, the classification of the goods had to be done under sub-heading 5504.31. He contended that the entry has to be read as it is and words cannot be added to it so as to read it differently nor implication can be drawn from the tariff headings. He contended that the Bombay Collectorate Trade Notice No. 146/90 dated 26-12-1990 as well as Indore Trade Notice No. 150/90 dated 27-12-1990, had also clarified this position with regard to the predominance of acrylic fibre and that presence of a small percentage of natural fibre would not take away the goods from the ambit of sub-heading 5404.31. 6. Shri Nair, learned DR arguing for the Revenue, submitted that the classifica....
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....2 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over any other single textile material - (B) For the purposes of the above rule - (i) Gimped horsehair yarn (Chapter 51) and metallised yarn (Chapter 56) are to be treated as a single textile material the weight of which is to be taken as the aggregate of the weights of its components or the classification of woven fabrics, metal thread is to be regarded as a textile material; (ii) The choice of appropriate heading shall be effected by determining first the chapter and then the applicable heading within that chapter, disregarding any materials not classified in that chapter; ....