KERALA SPINNERS LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE classification of cellulosic spun yarn manufactured by blending viscose fibre of cellulosic origin (predominant in weight) with non -cellulosic waste (falling under TI 18(iv) is the subject -matter in dispute in this appeal - the appellants' claim classification under TI 18 -111(1) of the Schedule to the erstwhile Central Excise Tariff which reads as "Cellulosic spun yarn - yarn in which man made fibre of cellulosic origin predominates in weight and..1) not containing any man made fibres of non -cellulosic origin."

(2.) THE facts leading to the present appeal are as follows : -

(3.) THE appellants pointed out that non -cellulosic synthetic waste is one of the raw material used in the manufacture of new product is itself classified under tariff item 18(IV) by the Bombay Customs Authorities. The appellants purchased the same from M/s. Adithya Mills Ltd., who bought it from the importers M/s. A.R. Trading Company vide Bill of Entry No. 002536 dated 10 -10 -1982. The goods imported were classified by the Bombay Customs Authorities at the time of import under Tariff Item 18(IV). In the manufacture of new product the appellants did not use any man made fibre coming under Item 18(1). Therefore, the appellants' new yarn in which man made fibre of cellulosic origin predominates in weight did not contain any man made fibre coming under 18(1). Thereafter, the Superintendent wrote to the appellants calling for proof that the goods received were synthetic waste and also whether the waste was subjected to any recycling and whether the yarn can be manufactured out of the waste without any recycling. It was replied that waste is not subjected to any recycling and the same is used for blending for manufacture of yarn.