TaxTMI 
TaxTMI 
1995 (5) TMI 29
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....ended yarn in which polypropylene fibre predominates was or was not entitled to benefit under Central Excise Notification No. 322/77-C.E., dated 1-12-1977? 2.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. 322/77-C.E., dated 1-12-1977 means yarn spun out of polypropylene fibres and will not include blended yarn manufactured by the appellant - Company comprising of 52% propylene and 48% viscose. 3.The appellant has contended that the majority view of the Tribunal is erroneous having regard to scope of the Notification and also the tariff description of goods in item 18E of the First Schedule to the Cen....
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.... Bimlipatam jute or mesta fibre);(e) man-made fibre of non-cellulosic origin, other than acrylic(f) fibre; flax;(g) ramie;(h) in any yarn are equal in weight, then such one of those fibres, the predominance of which would render such yarn fall under that sub-item or Item (hereafter in this Explanation referred to as the applicable sub-item or Item), among the sub-items and Items Nos. 18.III, 18A, 18B, 18C, 18D, 18E, 18F.I and 18F.II, which, read with the relevant notification, if any, for the time being in force issued under the Central Excise Rules, 1944, involves the highest amount of duty, shall be deemed to be predominant in such yarn and accordingly such yarn shall be deemed to fall under the applicable sub-item or Item, as....
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....on shall remain in force upto inclusive of the 31st March, 1979" 6.It is of significance that subsequently in 1988 two separate exemption notifications were issued (147/[88] and 149/[88]), in respect of polypropylene and the other in respect of blended yarns. 7.We are, however, in this case concerned with the scope and effect of the notification, dated 1-12-1977 set out hereinabove. The contention of the appellant which was upheld by the Collector (Appeals) and also the dissenting member of the Tribunal, was that the exemption granted by a notification should be construed liberally. The notification did not require that the exempted yarn must comprise of polypropylene only. Polypropylene is the predominant fibre in the yarn manufactur....
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....chief of T.I. 18E. 9.It was argued in support of this contention that in the case of Collector of Central Excise v. Rajasthan Spinning & Weaving Mills Ltd., 1995 (75) E.L.T. 36 (SC) = (1993) 1 SCC 420, it was held that Items 18 to 18-I form one group of entries dealing with composite yarn of various categories. The tariff items proceeded on the assumption that there were various types of composite yarns which consisted of different categories of yarns which were spun together and the entry specified that the composite yarn should be treated as belonging to the categories in which one relevant category predominated in weight. The entry envisaged a comparison between the weight of the particular yarn which went into its composition. Explan....
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....e type of non-cellulosic yarn out of a large variety of yarns which fall under the Heading of T.I. 18E, `Non-cellulosic spun yarn'. The exemption is limited to polypropylene spun yarn. Polypropylene fibres blended with other types of fibres will not qualify for the exemption. If in any blended yarn polypropylene predominates in weight, then such yarn will come within the description of goods given in T.I. 18E, but that will not turn the blended yarn into `polypropylene spun yarn', which has been exempted from duty. 13.It has been noted in the order of the Judicial Member of the Tribunal that no evidence has been given to show that the blended yarn manufactured by the appellant is regarded as polypropylene spun yarn in the market. 14.E....