2001 (11) TMI 528 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, Mumbai held that twisting polyester yarn with cotton yarn creates a new product liable for duty. The yarn is not classified as either polyester or cotton but as a combination of both. The demand for duty was found to be barred by limitation. The classification of the yarn under Heading 5403 was confirmed, and the exemption under Notification 318/86 was not applicable. The appeal was allowed in part.