In Brief
The Supreme Court upheld the classification of polyester and nylon covered yarns (manufactured using air covering process) under Chapter 54.02 of the Central Excise Tariff Act instead of Chapter 56.06. The appellant claimed the yarns were 'gimped yarn' eligible for Chapter 56.06, but the Court held that gimped yarn requires yarns to be wound spirally around a core and held by binder yarn. Here, the yarns were merely intermingled through pressurized air without wrapping. Applying the pre-dominance principle, since Polyester/Nylon constituted 90–93% by weight versus Lycra at 9–10%, classification under synthetic filament yarn (Chapter 54.02) was correct. Appeals dismissed."
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