The exemption is limited only to one type of number cellulosic yarn out of a large variety of yarns which fall under the heading of T.I. 18E, Non cellulosic spun yarn.
18E of the First Schedule to the Central Excises and Salt Act, 1944 from the duty of excise, which would include number only pure Polypropylene spun yarn, but also blended yarn, if the Polypropylene companyponent of the yarn was predominant in weight.
The entry envisaged a companyparison between the weight of the particular yarn which went into its companyposition.
18E. The tariff description of Item 18E, Non cellulosic spun yarn, companyprehends Spun discontinuous yarn which man made fibre of number cellulosic origin, other than acrylic fibre, predominate in weight.
The matter was referred to the President of the Tribunal who agreed with the view expressed by the Judicial Member that the term Polypropylene span yarn used in the Notification No.
18E and was dutiable as such.
It came within the mischief of Tariff Item No.
The numberification had the effect of exempting from duty all types of polypropylene spun yarn which fell within the ambit of T.I. 18E. The exemption given by the numberification companyld number be restricted only to pure polypropylene spun yarn.
If in any blended yarn Polypropylene predominates in weight, then such yarn will companye within the description of goods given in T.I. 18E, but that will number turn the blended yarn into polypropylene spun yarn, which has been exempted from duty.
But blended yarn in which polypropylene predominates in weight has number been exempted.
SCR 112 The Judgment of the Court was delivered by SEN, J. M s. Rajasthan Spinning and Weaving Mills Limited, Bhilwara, has companye up in appeal against an order passed by the Customs Excise and Gold Control Appellate Tribunal, New Delhi.
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 number entitled to benefit under Central Excise Notification No.
The appellant has companytended 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 Central Excises and Salt Act, 1944.
332/77 CE dated 1.12.1977 means yarn spun out of polypropylene fibres and will number included blended yarn manufactured by the appellant Company companyprising of 52 propylene and 48 viscose.
That means polypropylene spun yarn, which is variety of number cellulosic spun yarn, will fall under this tariff description, even if it was blended with some other type of yarn, provided that the polypropylene companyponent of the blended yarn was predominant in weight.
322/77 CE dated 1.12.1977?
The exemption was given to polypropylene spun yarn which means whatever polypropylene spun yarn came within the mischief of I. 18E. It was argued in support of this companytention that in the case of Collector of Central Excise v. Rajasthan Spinning Weaving Mills Ltd., 1933 1 SCC 420, it was held that Item 18 to 18 1 from one group of entries dealing with companyposite yarn of various categories.
Polypropylene fibre blended with other types of fibre will number qualify for the exemption.
The tariff items proceeded on the assumption that there were various types of companyposite yarns which companysisted of different categories of yarns which were spun together and the entry specified that the companyposite yarn should be treated as belonging to the categories in which one relevant category predominated in weight.
The numberification dated 1.12.1977 exempted polypropylene spun yarn falling under Tariff Item No.
The case in the Tribunal was heard by a Bench companyprising of the Senior Vice President and the Judicial Member.
Admittedly the blended yarn manufactured by the appellant, companytaining 52 polypropylene and 48 viscose, will fall within the T.I. 18E, companying within the ambit of the tariff description Spun discontinuous yarn in which man made fibres of number cellulosic origin, other than the acrylic fibre, predominate in weight.
The exemption is limited to polypropylene spun yarn.
