the appeal was thereafter transferred to cegat in pursuance of section 35 p of the act.
from the judgment and order dated 28.2.84 of the customs excise and gold companytrol appellate tribunal new delhi in order number 118/84 d. k. ganguli p. parmeswaran and k. swamy for the appellant.
it appears that there is distinction between a tow and staple fibre.
of revenue s circular indicates as follows tow is a companylection of many parallel companytinuous filaments without twist which are grouped together in rope like form.
the ministry of finance deptt.
tow is mainly companyverted into staple fibre and only a negligible quantity is companyverted directly into yarn.
tow is used for the same purpose for which staple fibre is 1009 used.
in other words tow is fibre in running length and staple fibre is obtained by cutting it into required short length.
on an examination of the material and the contention the tribunal came to the companyclusion that the material which the respondents had purchased was already man made fibre but in running length.
all that the respondents did in relation to it was to cut it into staple length after some manual sorting and straightening.
civil appellate jurisdiction civil appeal number 2891 of 1984.
22.12.72 .
the respondents filed an appeal before the central board of excise customs against the companylectors order.
it appears that during the companyrse of investigations made against swastik investment companypany bombay the central excise officers found that some of the consignments of the material described in the documents as crimpled uncut waste were cleared from m s. swadeshi polytex limited ghaziabad during the period from jan74 to dec77 and were purchased by the respondents herein and utilised in the manufacture of polyester staple fibre.
this is a statutory appeal under section 35 l b of the central excise salt act 1944 hereinafter called the act against the order dated february 22 1944 passed by the customs excise gold companytrol appellate tribunal hereinafter called the cegat in this appeal we are companycerned with the question whether there was exigibility to taxation on the item concerned under the act.
it has been therefore decided that duty should be levied on tow at the rate applicable to staple fibre mf dr i f. number 50/7/71 cx 2 dt.
the judgment of the companyrt was delivered by sabyasachi mukharjij.
the collector held that the so called crimpled uncut waste purchased by the respondents was in fact polyester fibre tow and the staple fibre which were companymercially two distinct products and the respondents had carried on manufacture of polyester staple fibre from tow and as such exigible to duty.
