Case: Collector of Central Excise, Calcutta Vs. Bowreah Cotton Mills Company Limited, Howrah

1. The dispute in this case is about classification of blended yarn. The composition of the two varieties of yarns given by the Tribunal is as under(A) Polyester 48%Cotton 35%Polynosic 17%(B) Polyester 48%Cotton 22%Polynosic 30%

Court's reasoning:
2. The case of the Department was that the classification of the goods should be under Itemic Spun(discontinuous) Yarn. The case of the assessee was that the goods should be classified under Itemas of Cellulosic origin. The Tribunal examined the composition of the blended yarns and came to the conclusion that the goods will not fall under any of the two heads, but will have to be classified under residuary entry 683. We have examined the reasoning given by the Tribunal. In view of the principles laid down in the case of CCE V. Rajasthan Spg.Wvg. Mills Ltd. we are of the view that the Tribunal has come to a correct decision.