Circular No. 115/26/95-CX dated 6/4/95
I am directed to refer to the changes made in the 1995 budget in the tariff
description of fabrics falling under chapter 52,54 and 55 and to state that certain
doubts have been raised regarding the duty liability of woven fabrics made from
bleached or dyed yarn.
2. The fabrics in question are woven from bleached or dyed yarn but do not undergo any
processing. In the tariff description for woven fabrics, separate sub-headings have
been made for ""bleached woven fabrics"", ""dyed woven fabrics"" etc. According to the new
sub-heading notes given in section XI, the expression ""bleached woven fabrics"" would,
inter alia consist of fabrics woven from bleached yarn in addition to fabrics
subjected to the process of bleaching. Similar would be the case for dyed fabrics. The
point for consideration is what would be the classification and consequent dutiability
of fabrics woven from blenched or dyed yarn but which have not been subjected to the
process of bleaching, dyeing etc. at the fabric stage.
3. It may be noted that while the section notes and chapter notes have been more or
less aligned with the HSN, there is difference in the description in the relevant
headings in the excise tariff. In the excise headings, separate categories have been
made for fabrics not subjected to any process, and for fabrics which have been
subjected to the specified processes. One sub-heading exclusively refers to fabrics
which have not been subjected to any process. The sub-headings for woven bleached
fabrics or dyed fabrics are part of the main description which includes only fabrics
which have undergone some process. The section notes, chapter notes, and the heading
descriptions have to be read harmoniously. Therefore, the reference to bleached woven
fabrics or dyed fabrics in the relevant sub-headings will not include fabrics which
have been woven from bleached or dyed yarn but have not been subjected to any process.
These sub-headings only include fabrics which are subjected to various processes. In
short, so long as the fabrics themselves are not subjected to any process, it will
continue to be classified as fabrics not subjected to any process irrespective of
whether such fabrics have been woven from bleached yarn or dyed yarn etc.
Sd/-
(Gautam Ray)
Director (TRU)
F.No. 357/2/95-TRU
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