P.C. Jain, Member (T)

1. Brief facts of the case are as follows :-

1.1 The appellant/importer imported the goods what are described by him in the bill of entry as "Cashmere Top" and "Mangol Super Top". The spot adjudication order, however, describes the goods as "Cashmere Wool Top". The appellant claimed the import under OGL whereas the department is of the view that the goods are covered by S. No. 106 of Appendix 2/PI.-B which reads as "Wool fabrics/wool tops/woollen yarn/wool waste/wool knitting". The department's contention on the basis of above entries is that the imported goods are wool tops whereas the contention of the appellant that they are not wool tops but they are hair of special type of goats; wool is only a fibre grown on sheeps and lambs. It is, therefore, contended that the imported goods are not covered by Appendix 2/PI.-B as mentioned above and therefore, the goods are under OGL.

2. In support of his contention, the learned consultant for the appellant has urged that para 59 of the Hand-Book of Imports Exports Procedures, 1985-88, the relevant Hand-Book for the import in question, clearly states that there is a complete correlation between Import Trade Control (ITC) classification and Indian Customs Tariff (ICT) classification. Both these are based on BTN classification. The last said classification is also known as CCCN. From it follows, according to the learned advocate, that the Policy has to be interpreted according to the CCCN classification. Under CTA 1975 wool is only what is grown on sheep or lamb. This is clear, according to him, from page 735 Vol. 2 of the General Explanatory note of the CCCN which states "throughout the Nomenclature 'wool ... the "natural fibre grown by sheeps or lambs". A distinction has been created, according to him, in the ICT based on CCCN between the wool and other animal hair. Since the goods imported are of other animal hair, they cannot be treated as wool. In support of his contention that "Cashmere" comes from an animal other than sheep or lamb, he relies on a number of Technical Authorities which defines 'Cashmere' as follows :-

(1) Cashmere comes from a small goat raised in Kashmir, China, and Mongolia. The fibres vary in colour from white to gray to brownish gray. The goat has an outer coat of long coarse hair and an inner coat of down. The hair is combed by hand from the animal during the molting season, and care is taken to separate the coarse hair from the fine fibres. Only a small part of the fleece is the very fine fibre probably not more than l/4th per goat. Cashmere is used in high quality apparel. Fabrics are warm, buttery in handle and have beautiful draping characteristics. Cashmere is more sensitive to chemicals than wool.

Source: Taken from - "Textiles" by Hollen, Saddler Langford Fifth Edition Published by MacMillan Publishing Co. Ltd., N.Y.

(2) Another goat important for its hair is the Cashmere goat. These animals have distinct coats- the long straight, coarse outer and the fine silky under coat which is the cashmere fibre. This coat of fine fibres, which is either shed or combed off, furnishes one of the most important speciality fibres. Cashmere fibres are used alone or mixed with wool in woven or knitted fabrics for Sweaters, scarves and other articles.

Source: Taken from: "Textile Fibres and their use" by Hess J.B.. Lippincott Co. (Publishers).

(3) Properties of Cashmere Fibre: Cashmere fibres are 1-1/4 inches to 3 /2 inches long. They have 6 to 7 scales per 100 micron of length and are 14 to 16 micron in diameter. The fibres may be identified by these facts plus the fact that Cashmere, unlike other wool and hair fibres, has a characteristically shaped scale cell. In addition this fibre has roots attached. The cashmere fibre is practically round. The properties of cashmere are similar to those of wool, with few exceptions. Cashmere wets more readily and is much more sensitive to the action of alkali possibly because of its great fineness. The natura