Order
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%
2. The case of the Department was that the classification of the goods should be under Item 18-E as Non-cellulosic Spun Yarn-Spun (discontinuous) Yarn. The case of the assessee was that the goods should be classified under Item 18-III(ii) as 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 68.
3. 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. 1993 Supp (1) SCC 420 (2), (1995) 75 ELT 36 we are of the view that the Tribunal has come to a correct decision. The appeals are dismissed. There will be no order as to costs.