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TMI Blog2007 (11) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... d material (re generated). They have filed classification list claiming exemption under Serial No. 152 of Notification 4/97 dated 1-3-1997 which reads as under: 152 63.01 The following blankets, the value of which does not exceed Rs. 100 per square metre, namely : (a) blankets of wool; (b) blankets of yarn of shoddy falling within Heading No 55.09 or Heading No 55.10 of the said Schedule. Nil 2. They were issued a show cause notice alleging that in respect of blankets manufactured from shoddy yarn falling under Chapter Headings 5106.11, 5106.12, 5106.13, exemption under serial 152 of notification 4/97 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd both sides. 4. The id. Advocate Shri V. Sridharan for the appellants submits that shoddy blankets manufactured by them is nothing but blankets of wool and they are therefore eligible to exemption provided under serial 152(a) of notification 4/97. The id. Advocate submitted that it has all along been the intention of the Government to exempt shoddy blankets from duty and invited our attention to serials 4 and 6 of notification 34/95 under which the blankets made out of shoddy yarn with a value not exceeding Rs. 100/- per square metre was chargeable to nil rate of duty along with blankets made from indigenous wool during the period 1995-96. Similarly under serial 17 of notification 27/94 blankets made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 100/- per sq. metre would stand exempted which the one made from shoddy wool would be chargeable to duty. 5. It was further submitted that serial No. 152(a) of notification 4/97 refers to blankets of wool without indicating the nature of the wool as to whether it should be virgin wool or shoddy wool or otherwise. The Commissioner's inference that blankets of wool would be only one which is made out of 100% wool is patently wrong as there is no such requirement either under the notification or under the Tariff. The blankets of wool are classifiable under Chapter Heading 6301.20 and not under 6301.90 as is being made out by the Commissioner. In this regard, he invited our attention to N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blankets made thereof shall stand exempted under serial 152(b) of notification 4/97 which however is not the Revenue's case. Therefore, in either situation blankets made out of shoddy yarn will be eligible for exemption either under serial No. 152 (a)or 152(b) of notification 4/97. 7. On a query from the Bench that once wool has been defined under Note 1 to Chapter 51 as "wool" means the natural fibre grown by sheep or lamps' and Note 2 to Chapter 51 thereafter states that wool shall include respective waste and garneted stock after they have been carded, combed or otherwise processed for spinning; in relation to products of Heading Nos. 51.05, 51.06, 51.07, 51.08, 51.09, 51.10, 51.11 and 51.12, does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red as blankets of wool or not. We find that the blankets of wool have not been defined anywhere either in the Tariff or in the notification. In order to determine the classification of blankets as being of wool or of cotton or synthetic fibre, we have to rely upon Section Note 2(A) of Section XI of the Central Excise Tariff along with sub-heading Notes 2(A) which clearly state that a product under Chapters 56 to 63 containing two ore more textile material are to be regarded as if consisting wholly of that one textile material which predominates by weight over any other single textile material. Since it is not disputed by Revenue that wool predominates in weight, the blankets in dispute have to be considered as blankets of wool only. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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