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TMI Blog1990 (4) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... c staple waste, claiming classification of the blended yarn under Heading 55.05. However, the Department, after subjecting the yarn to chemical analysis, issued a show cause notice to the assessees on 28-4-1987, for assessment under Heading 55.06 on the ground that the chemical test revealed that the yarn contained synthetic staple fibre. 3. In the order-in-original it is stated that in the reply to the show cause notice, the assessees urged - a) that the yarn was manufactured out of artificial staple fibre blended with synthetic staple fibre waste, and synthetic staple fibre and synthetic staple fibre waste were not one and the same. b) that the type of raw material used in the manufacture of particular yarn could not be ascertained by simply analysing the yarn chemically and only a physical inspection/verification of the raw material used for manufacture of yarn could establish its contents; and in support of this contention they quoted the report of the Chemical Examiner, Madras wherein waste fibres were used in the blended yarn ; c) that the final approval given by the proper officer to the C.Ls No.76 &80 of '87 could not be deemed to be provisional merely by issuance of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... synthetic fibre in the form of waste which is not known as staple fibre will not attract Tariff Heading 55.06, because the words 'staple fibre' appearing after the words 'synthetic' cannot be ignored. If it is a waste fibre or non-staple fibre, as argued by the appellant, of synthetic origin, the use of the same will not take out the yarn of Tariff Heading 55.05, and bring it under Tariff Heading 55.06. Synthetic fibre may be used as obtained from waste fibre, and it cannot be said that synthetic staple fibre has been used under 55.05, because the fibres themselves are classifiable differently. Synthetic staple fibres are being classified under 55.01, whereas waste of synthetic staple fibres are being classified under 55.03. In the absence of evidence that the impugned yarn has been manufactured by utilising synthetic staple fibre, falling under 55.01, the same cannot be classifiable under 55.06. It has necessarily to be classified under 55.05. There is nothing contrary to the above view in the test report of the Chemical Examiner." The Department has preferred the above appeal against this order dated 25-4-1989. 6. We have heard Shri L.C. Chakravarti, learned DR for the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... governed by the twin factors of denier & length. The learned advocate points out the mention of denier & length in purchase bills of polyester staple fibre absence of such indication in the bills relating to purchase of polyester cutter waste and polyester drawn waste. He refers to the definition of "staple" & "staple fibre" in several textile encyclopedias and text books on textiles, to emphasise that the word "staple" has a definite meaning in textile parlance. He submits that the test reports refer to staple fibres of varying lengths and that the moment there is a variation in length, the fibre can no longer be a 'staple' fibre so as to bring the yarn within the fold of Heading 55.06. 9. We have heard both sides, carefully considered the submissions & perused the records. The details of test reports of yarn samples are found in Annexure B to the Collector's authorisation. The samples have been described as non-cellulosic synthetic waste/viscose yarn and MM fibre yarn. The purpose of drawal of samples is to test the percentage of synthetic waste & viscose staple fibre, the percentage of non-synthetic waste & viscose. The findings of the C.E. are as given below :- Description o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The sample is a double ply spun yarn composed of man-made synthetic staple fibres of non-cellulosic origin (Polyester) and man-made artificial staple fibres of cellulosic origin (Viscose). The percentage of non-cellulosic fibre content by weight on the total fibre content in the sample is 39.2. -do- 7. -do- The sample is a double ply spun yarn composed of man-made synthetic staple fibres of non-cellulosic origin (Polyester) and man-made artificial staple fibres of cellulosic origin (Viscose). The %age of non-cellulosic fibre content by weight on the total fibre content in the sample is 12.8. 10. Annexure A contains details of test reports of samples of the raw material used in manufacture of the yarn, which are as follows :- Description of samples drawn Purpose for which drawn Findings of the Chemical Examiner (Extract) 1. Non-cellulosic thetic waste syn To be tested for % age of non-cellulosic synthetic waste The sample is in the form of light blue colour tinted fibrous mass. It is composed of man-made synthetic staple fibre of non-cellulosic origin (Polyester) and man-made artificia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igin (Viscose). These tufts have some entangled knots and a few of them have dirt and foreign bodies adhering on them in traces. Percentage of polyester received: 97.0 Percentage of Viscose as received: 3.0 Please See note below : NOTE : Fibre waste (soft-waste) has been described under chapter notes to Chapter 55.05 in the Explanatory Notes to the Harmonised commodity description and coding system as follows :-" "-------- relatively long fibres obtained as waste during the formation and processing of filaments, short fibres obtained as waste from the carding (eg. noils, small broken pieces of laps, slivers, or rovings). The samples under reference have the characteristics of waste mentioned above only with respect to length of fibres. 4. Synthetic waste To be tested for %age of noncellulosic synthetic waste The sample is in the form of pale blue coloured tinted entangled fibrous mass. It is composed of man-made synthetic staple fibres of non-cellulosic origin (Polyester) and man-made artificial staple fibres of cellulosic origin (Viscose). Percentage of polyester fibres : 31.1% Percentage of Viscose fibres : 68.9% Please see Note below: Note: The sample is found to be o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stem. The sample under reference has the characteristics of waste mentioned in the HSN only with respect to length of fibre. 9. Synthetic waste To be tested for % age of synthetic waste The sample is in the form of white fibrous mass. It is composed of artificial staple fibres of cellulosic origin (Viscose) and synthetic staple fibres of non-cellulosic origin (Polyester). %age of polyester fibres :56.7 %age of Viscose fibres : 43.3. 10. 100% Non-Cellulosic synthetic waste To be tested for %age of noncellulosic synthetic waste The sample is in the form of assembled mass composed mainly of small, thin and thick tufts of white staple fibres with cut ends laid parallel of varying lengths. It is composed wholly of non-cellulosic fibre (Polyester). These tufts have some entangled knots and a few of them have dirt and foreign bodies adhering on in traces. 11. 100% Non-cellulosic synthetic waste To be tested for % age of noncellulosic synthetic waste. The sample is in the form of white assembled mass, composed mainly of small, thin and thick tufts of white staple fibres with cut ends, laid parallel, of varying lengths. It is composed wholly of non-cellulosic fibres (Polyest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The sample is in the form of white assembled mass composed mainly of small, thin and thick tufts of white staple fibres with cut-ends laid parallel of varying lengths. It is composed ' wholly of non-cellulosic fibres (Polyester). These tufts have some entangled knots and few of them have dirt and foreign bodies adhering on in traces. 19. -do- -do- The sample is in the form of white assembled mass composed mainly of small, thin and thick tufts of white staple fibres with cut-ends,laid parallel of length varying from 3.5 - to 4.5 cm. It is wholly composed of non-cellulosic fibres (Polyester). These tufts have some entangled knots and a few of them have dirt and foreign bodies adhering to them in traces. 20. Synthetic waste To be tested for % age of synthetic waste The sample is in the form of light blue colour tinted fibre mass. It is composed of man made synthetic staple fibres of non-cellulosic origin (Polyester) and man-made artificial staple fibres of cellulosic origin (Viscose). The %age of composition of fibres as below : : 29.6 %age of Polyester fibres : 70.4 %age of Viscose fibres 21. 100% non-cellulosic syntheti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bres : 58.5% 27. 100% non-cellulosic synthetic waste To find out the % age of noncellulosic synthetic waste The sample is in the form of white assembled mass composed of small, thin and thick tufts of white staple fibres with cut ends, laid parallel, of varying lengths. It is composed wholly of synthetic staple fibres of non-cellulosic origin (Polyester). These tufts have entangled knots and a few of them have dirt and foreign bodies adhering on in traces. 28. Synthetic waste To find out % age of polyester waste and viscose waste The sample is in the form of a light violet tinted fibrous mass. It is composed of artificial staple fibres of cellulosic origin (Viscose) and synthetic staple fibres of non-cellulosic origin (Polyester). The percentage composition being Polyester fibres : 41.1% : 58.9% Viscose fibres 29. -do- -do- Sample is a greyish white fibrous mass having knots and slubs. It is composed of man-made staple fibre of non-cellulosic origin (Polyester) and man-made artificial staple fibre of cellulosic origin (Viscose) The non-cellulosic fibre content is 62.2% by weight. 30. 100% Non-Cellulosic synthetic was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of waste is with respect to length of fibre, which itself indicates that the length of fibre is relevant for determination whether it is staple or waste. In these cases the purpose was to determine the percentage of non-cellulosic synthetic waste. Samples 6,10,11,13,17,18,19, 21,24,25, 27,30,31, & 33 are of varying lengths (in sample No. 3 the length varies from 4 to 4.5 cm and in sample No. 19 the length varies from 3.5 to 4 cm ) & some have entangled knots, slubs, dirt and foreign bodies in traces and cut ends. Regarding the remaining samples which do not have the characteristics of waste, nothing turns on them because, in these cases, the Chemical Examiner was only determining the percentage (composition) of synthetic waste. 13 A wealth of technical literature has been placed before us on what is meant by "staple" & "staple fibre". At P/409 of Bernard Corbman's "Textiles-fiber to fabrics" (5th Edition) it is mentioned that 'staple is produced in a wide range of deniers and lengths according to the desired end uses. 'Modern Textiles' by Dorothy Lyle (at page 26) defines staple fibres, natural or man-made as "short lengths measured in inches or a fraction of an inch". In KirkOthm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Collector of Central Excise, Hyderabad under Section 35B (2) of the Central Excises & Salt Act says that: "On physical examination of the samples of synthetic waste, it is seen that it is a mixture of staple fibre of different lengths and thickness. The assessees have used such synthetic waste to the extent of 48% in the manufacture of disputed yarn as described in the classification lists filed by them". The above facts clearly establish that the raw materials used in the disputed yarn were not synthetic staple fibre. Still the chemical examiner, vide his test reports at Annexure 'B' to the authorisation, has reported that the yarn contained synthetic staple fibre . Obviously, therefore, his reports are based on misconception of the definition of "staple fibre" and consequently these test reports cannot be reliable basis for determining the classification. The Revenue's appeal is based on these test reports. The Revenue has not produced any material, except these test reports, to prove that the yarn in dispute contained synthetic staple fibre. On the other hand, the Collector (Appeals) has given convincing reasons to hold the classification of the yarn under Heading 55.05. 16. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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