TaxTMI 
TaxTMI 
1999 (2) TMI 189
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....ice as to why the products listed at Sl. Nos. 13 to 24 should not be classified under sub-heading 5505.00 and why the rate of duty as at Sl. No. 14(b) of Notification 53/91, dated 25-7-1991 should not be made applicable to these products. 2.1 The Assistant Collector approved the classification list with the concessional rate of duty at Sl. No. 14(a) of the said Notification 53/91, as claimed by the respondents. 2.2 On application under 35E by the Assistant Collector concerned on the direction of the jurisdictional Collector, the Revenue did not succeed. Hence this appeal by the Revenue. 3. The issue before the Tribunal in this appeal of the Revenue is whether the yarn manufactured out of artificial staple fibre and departmental generated waste can be considered as to contain synthetic textile material so as to consider the yarn for concessional rate of duty as per Sl. No. 14(a) or otherwise under Notification No. 53/91, dated 25-7-1991. 4. Before we deal with the applicability of the said notification to the product manufactured by the respondents herein, we set out the process of manufacture as given in the impugned order. The respondents purchased ....
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.... which becomes spinnable but that man-made fibres continue to remain spinnable even though blended with some such waste. That it is not possible to recover fibre from aforesaid process waste by some mechanical process. The only method is to subject the process waste to a chemical process where the polymer is deplomerised and basic raw material is obtained. In such process it is not possible to get the same quantity of raw material equivalent to the quantity of process waste. The recovered raw material is required to be again polymerised and pass through various processes to obtain the characteristics and properties of fibres." In other words it was held, in short, that the synthetic waste utilised in the manufacture of ASF cannot be considered to be containing synthetic fibre. 4.2 The lower appellate authority after examining the Test Reports has held that the Chemical Examiner has tested only the samples of yarn in which case it is not possible to testify the character of the waste used in the yarn. Nevertheless, he finds that, no doubt, that the waste contains certain quantity of synthetic fibres of variable lengths but this itself would not make the waste as consis....
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....he case of CCE v. Vardhan Syntex & Ors. is totally irrelevant. It is also urged that it is not disputed by the respondents about the lack of total absence of synthetic textile material in the yarn being manufactured by the respondents. Finding of the lower authorities that the fibre waste and/or the sub-standard fibre waste used by the respondents cannot be called synthetic textile material for the purpose of determining the eligibility to the concessional rate of duty under the aforesaid notification, is incorrect inasmuch as they have equated the expression `synthetic textile material' in exclusion clause of Sl. No. 14(a) of Notification 53/91-C.E., to synthetic staple fibre. On the basis of meaning assigned to the terms `synthetic', `artificial' and `manmade' in Note 2(d) to Section XI of the Schedule to CETA, 1985, the said Section Note, according to the Revenue only assigns meanings to the terms `manmade fibre', `synthetic fibre' and `artificial fibre'. It also clarifies that the terms `manmade', `synthetic' and `artificial' in relation to the textile material have the same meaning, as assigned to those terms in relation to fibre in Section Note. It is, therefore, erroneous, a....
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.... Sl. No. Heading/ Sub-heading Description of goods Rate 14. 55.05 Yarn (including sewing thread) of artificial staple fibre. (a) not containing any synthetic material (i) of counts not exceeding 25 1.85 paise per count per kilogram (ii) of counts exceeding 25 but not exceeding 35 46.20 paise plus 4.62 paise per count per kilogram exceeding 25 (iii) of counts exceeding 35 92.40 paise plus 7.39 paise per count per kilogram exceeding 35 (b) others Rs. 8.00 per kilogram We observe that the expression used in the Notification in the relevant Sl. No. 14(a) is "not containing any synthetic textile material". Sl. No. 14(a) of the said Notification reads as "yarn (including sewing thread) of artificial staple fibre, (a) not containing any synthetic textile material". Had the entry read as "yarn (including sewing thread) of artificial staple fibre, (a) not containing any synthetic staple fibre", the judgment of the Tribunal in Priyadarshini Spinning Mills could be relied upon....
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....ansformation of natural organic polymers (for example, cellulose, casein, proteins or algae), such as viscose, rayon, cellulose acetate, cupro or alginates. Likewise artificial textile material will mean textile material of organic polymers produced by manufacturing process by chemical transformation of natural organic chemicals (for example cellulose, casein, proteins or algae), such as viscose, rayon, cellulose acetate, cupro or alginates. Non-cellulosic synthetic waste is classifiable under Tariff Heading 55.03. Therefore, non-cellulosic synthetic waste can be considered as a synthetic textile material falling under the said Heading. The said Note 2(D) of Section XI makes a clear distinction between `textile material' and `fibres' when used in the context of terms `man-made', `artificial' and `synthetic'. 10. In view of the foregoing discussion, finding of both the lower authorities has gone wrong by equating synthetic staple fibre to synthetic material as given at Sl. No. 14(a) of Notification 53/91-C.E. despite the definition of the said expression `synthetic textile material' in Section Note 2(D) of Section XI of the Schedule to CETA, 1985. We note that the notificati....