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TMI Blog2007 (7) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... and demanded applicable duty of Rs. 9,90,124/- not paid. Commissioner imposed penalty of Rs. Two lakhs on the assessee under Rule 173Q of the Central Excise Rules, 1944. Facts of the case in brief are that the appellants manufactured a variety of yarn comprising a core of elastomeric (spandex) yarn and a sheath of cotton rove. The cotton content of the yarn was ascertained to be 93.1% by weight and elastomeric yarn 6.9%. The impugned yarn was got tested by the departmental Chemical Examiner who certified the sample to be a white single ply spun yarn and of the aforesaid composition. The appellants had contested the proposal to classify the product under CSH 5205.11 as cotton single yarn, with the aid of expert opinions of Dr. J. Venkat Rao, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arn. As the subject yarn is composed of a filament yarn enveloped in cotton rove we find the same to conform to the HSN definition of single yarn. 3.1 There is no dispute that the subject yarn contains more than 85% by weight of cotton. Both the parties agree that the item does not satisfy the description multiple (folded) or cabled yarn of CSH 5205.19. Assessee claims that the goods are classifiable as "others" of CSH 5205.90, as in their view, the item is not a single yarn or multiple (folded) yarn or cabled yarn of the other two sub-headings under Heading 5205. 3.2 The Heading No. 5205 of the Central Excise Tariff reads as follows: "52.05 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; Other Nil" 3.3 The use of single dash (-) and double dashes (--) prefixing entries in the tariff and how to read them is explained in the General Explanatory Notes as follows "(1) Where in column 3 of this Schedule the description of an article or group of articles under a heading is preceded by "-", the said article or group of articles shall be taken to be a sub-classification of the article or group of articles covered by the said heading. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the duty and that the abatement in terms of Section 4(4)(d)(ii) of the Central Excise Act was also denied to them. We agree that the assessee is entitled to these benefits. As regards the modvat benefit, it will be open to the assessee to establish their claim with documents showing payment of duty on the related inputs. The matter is remanded to the original authority for the above limited purpose. The appeal is disposed of in the above terms. 4. Appeals No. E/1064/04 & E/1085/04 : These appeals are against orders affirming orders of original authority deciding classification of identical yarn (we considered in the above appeal) manufactured and cleared by M/s. Arunachala Gounder Textiles Mills Pvt. Limited and M/s. PKPN Spinning Mills ..... X X X X Extracts X X X X X X X X Extracts X X X X
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