TaxTMI 
TaxTMI 
TaxTMI 
1995 (5) TMI 235
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....C. SEN, J.-M/s. Rajasthan Spinning and Weaving Mills Limited, Bhilwara, has come up in appeal against an order passed by the Customs Excise and Gold (Control) Appellate Tribunal, New Delhi. The case in the Tribunal was heard by a Bench comprising the Senior Vice-President and the Judicial Member. There was difference of opinion between the two Members on the following question: Whether, the blended yarn in which polypropylene fibre predominates was or was not entitled to benefit under Central Excise Notification No. 322/77-CE, dated December 1, 1977. The matter was referred to the President of the Tribunal who agreed with the view expressed by the Judicial Member that the term "polypropylene spun yarn" used in the Notification No. 332/77....
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.... on the total fibre content. Explanation I.-'Count' means the size of grey yarn (excluding any sizing material) expressed in English count. Explanation II.-For multiple fold yarn, 'count' means the count of the basic single yarn. Explanation III.-Where two or more of the following fibres, that is to say,- (a) man-made fibre of cellulosic origin; (b) cotton; (c) wool or acrylic fibre, or both; (d) silk (including silk noil); (e) jute (including Bimlipatam jute or mesta fibre); (f) man-made fibre of non-cellulosic origin, other than acrylic fibre; (g) flax; (h) ramie; in any yarn are equal in weight, then such one of those fibres, the predominance of which would render....
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....leviable under tariff item 18E on such yarn in view of a Notification No. 332/77 dated December 1, 1977, which, is as under: "Notification No. 332/77 dated December 1, 1977: In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts polypropylene spun yarn falling under item No. 18-E of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944) from the whole of the duty of excise leviable thereon. This notification shall remain in force up to and inclusive of the 31st March, 1979." It is of significance that subsequently in 1988 two separate exemption notifications were issued (147/18 and 149/80), in respect of polypropylene and the other in respe....
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....yarn, but also blended yarn, if the polypropylene component of the yarn was predominant in weight. It came within the mischief of tariff item No. 18E and was dutiable as such. The notification had the effect of exempting from duty all types of polypropylene spun yarn which fell within the ambit of tariff item 18E. The exemption given by the notification could not be restricted only to pure polypropylene spun yarn. The exemption was given to polypropylene spun yarn which means whatever polypropylene spun yarn came within the mischief of tariff item 18E. It was argued in support of this contention that in the case of Collector of Central Excise v. Rajasthan Spinning & Weaving Mills Ltd. (1993) 1 SCC 420, it was held that items 18 to 18-I fo....
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.... December 1, 1977. This notification exempts from duty polypropylene spun yarn falling under tariff item 18E, but not blended spun yarns containing polypropylene. Admittedly, the blended yarn manufactured by the appellant, containing 52 per cent polypropylene and 48 per cent viscose, will fall within the tariff item 18E, coming within the ambit of the tariff description "spun (discontinuous) yarn in which man-made fibres of non-cellulosic origin, other than the acrylic fibre, predominate in weight". But blended yarn in which polypropylene predominates in weight has not been exempted. The exemption is limited only to one type of non-cellulosic yarn out of a large variety of yarns which fall under the heading of tariff item 18E, "non- cellul....
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....ever, is confined to polypropylene spun yarn only. It does not speak of any blended yarn in which polypropylene predominates or is equal in weight with any other fibre. It has been noted in the order of the Judicial Member that no proof was adduced to show that in commercial parlance such blended yarn was known as polypropylene yarn. Therefore, there is no reason to hold that the blended yarn produced by the appellant comprising 52 per cent polypropylene fibre and 48 per cent viscose fibre will answer the description "polypropylene spun yarn" as given in the exemption notification. It is also of significance that subsequently in 1980 two separate notifications were issued granting exemption from duty under tariff item 18E, one related to p....