JUDGMENT

SAWANT, J.:- Leave granted.

2. The respondents herein are the manufacturers of Cellulosic Spun Yarn containing man-made fibre of non-cellulosic origin, i.e., by blending cellulosic fibre and the waste of non-cellulosic origin in different proportions. They filed two classification lists being List No. 4/83 dated 5-7-1983 and List No. 9/ 84 dated 1-3-1984 under Tariff Item No. 18 111 (i) showing in each of the two lists [i] 85% of cellulosic fibre and 15% waste of noncellulosic origin, [ii] 52% of cellulosic fibre and 48% waste of non-cellulosic origin and [iii] 60% of cellulosic fibre and 40% waste of non-cellulosic origin.

3. It appears that from June 1983, the respondent-Company started manufacturing yarn out of blending of NCSW/Viscose and claimed classification under Tariff Item No. 18 Ill (i) as per the classification list effective from 5-7-1983. The main varieties were 40s and 60s and the rate. of duty in July 1983 was Rs. 1. 30 plus 15% [Additional Duty] plus 10% [Special Duty], i.e., total of Rs. 1.63 approximately, per k.g. for 4 0 s yarn. For the same count of yarn for Polyster/Viscose manufactured out of virgin fibre, the rate of duty was Rs. 9.00 plus 15% [Additi