1982 (1) TMI 200

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....on the basis of a clarification obtained from the Assistant Collector that the said yarn was eligible to avail of the benefit of exemption provided under Notification No. 332 of 1977. However, a show-cause notice was issued subsequently demanding duty on the yarn so cleared on the ground that Notification No. 332 of 1977 did not cover the goods in question. The Assistant Collector finally withdrew the notice-cum-demand with the observation that since the content of polypropylene fibre predominated in the yarn in question it would be rightly classifiable as polypropylene yarn and would be eligible for the benefit of the Notification. The said order of the Assistant Collector was however revised by the Collector who held that the blended yarn....

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....nly for classifying a particular yarn under Item 18E of the Central Excise Tariff, namely "non-cellulosic spun yarn" and that since Notification No. 332 of 1977 grants exemption only to "polypropylene yarn" and not to "non-cellulosic spun yarn" the predominance criterion has no application to the polypropylene yarn mentioned in the Notification. The Government accordingly consider that the polypropylene yarn mentioned in the Notification refers only to 100% polypropylene yarn and not to a yarn made up predominantly of polypropylene fibre. The Government further consider that any blended yarn is ordinarily sold in the market as blended yarn not only to the dealers but even to the consumers and hence in common as well as trade parlance blende....