Applicability of Notification No. 52/86-C.E., dated 10-2-1986 as amended to glass fibre yarn - Regarding - Central Excise - 15/88

Applicability of Notification No. 52/86-C.E., dated 10-2-1986 as amended to glass fibre yarn - Regarding Circular No. 15/88 Dated 31-5-1988 [From F. No. 132/11/87-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Applicability of Notification No. 52/86-C.E., dated 10-2-1986 as amended to glass fibre yarn - Regarding. A doubt has been raised as to whether the benefit of exemption under Notification 52/86-C.E., dated 10-2-1986 as amended would be available to glass fibre yarn. 2. The issue was discussed in the West Zone Collectors' Conference held at Pune on 10-10-1987. It was explained that glass fibres are formed in continuous length when molten glass is passed through orifices. The predetermined quantity of such glass fibres is collected on a plastic sleeve. The winding machine is stopped and the package of the fibre is removed from the winding machines. Such packages are known as glass fibre cakes. These are transferred to frame for giving twist to the glass fibre to convert into yarns. 3. The matter has been further examined in Board's office in consultation with the Deputy Chief Chemist, Central Revenue Control Laboratory. In the technology of man-made fibres the process of making filament by extruding molten polymer or glass is no doubt known as spinning. The filaments can be assembled with or without twist to make "filament yarn". The filament can be cut into staple fibres and then the staple fibres can be spun into a yarn known as spun yarn. While both filament yarn and spun yarn of glass are covered by the description "yarn spun wholly out of glass fibres", the specific exclusion of continuous filament yarn of glass fibre will obviously leave only the spun yarn of glass fibres for enjoying the benefit of exemption specified against the relevant entry in Notification. 4. The Board agrees with the above views and, accordingly, holds that the benefit of exemption under Notification No. 52/86-C.E., dated 10-2-1986, as amended would not be available to glass fibre yarn.