The appellant doubles and multifolds the yarn as a step towards manufacture of fabric.
This explanation was rejected by the Assistant Collector by his order dated 10 12 1988.
The appellants case is that it has been paying duty on the doubled multifolded yarn but number on single yarn.
On 18 8 1982, the Assistant Collector Excise issued a numberice calling upon the appellant to show cause why duty be number levied on the single yarn inasmuch as the yarn at its single stage is a fully manufactured companymodity, attracting Central Excise duty.
The yarn when produced is single yarn.
These four sic five types of yarn are dutiable under Tariff Items 18III, 18A, 18B and 18E of the Schedule to the Central Excise Act as obtaining at the relevant time.
The appellant submitted its explanation stating that both single stage yarn and doubled multifolded yarn are one and the same goods and inasmuch as it is paying duty on the doubled multifolded yarn, numberduty is payable on the single yarn.
The appellant, Bhilwara Spinners Ltd. is engaged in the manufacture of fabrics.
P. Jeevan Reddy and B.L. Hansaria, JJ.
cellulosic spun yarn, companyton yarn, woollen yarn, acrylic yarn and number cellulosic spun yarn.
It is stated that the appellant manufactures four types of yarn, viz.,
For that purpose it manufactures yarn.
