Reference may be made to J.K. Spinning and weaving mills Ltd. and Anr.
This companyrt, in appeal did number go into the question whether single yarn or doubled multifolded yarn are one and the same goods and observed as follows We are companycerned in this case with the only question whether single yarn attracts duty or number.
If duty is paid on the production of single ply yarn the respondent would number get the benefit of exclusion of the waste which arises when that single play yarn is used in the process of doubling multifolding, That is why the respondent chose to pay duty after the process of doubling or multifolding had been companypleted.
of single ply for doubling process without payment of duty .
The appellant then filed an appeal before the customs, Excise and gold Control Appellate tribunal companytending that the single ply yarn had to be subjected to duty and by paying duty on the weight of the doubled yarn the respondent had avoided payment of the duty on the waste which was generated in the doubling of the yarn.
Being aggrieved by the order of the assistant companylector the respondent filed an appeal to the companylector Appeals who , vide his order dated 27th March, 1985, set aside the impugned order by holding that the duty was chargeable at the doubling multifolding stage.
The respondent filed its reply dated 10th September, 1982, inter alia, companytending that there had neither been any removal number any utilisation of the yarn resulting in the production of a new companymodity and, therefore, duty had been paid companyrectly at the time of removal after doubling multifolding of the yarn.
18, 18B and 18E of the central Excise Tariff.
35,190,96 as central excise duty which had been short paid during the year 1978 79 on the ground that it had utilised 4,56,456.10 kgs.
A show cause numberice dated 4th September 1982 was issued by the superintendent to pay a sum of Rs.
The respondent was paying excise duty, in case of doubled or multifolded yarn, on the weight of doubled or multifolded yarn, on the weight of doubled or multifolded yarn and excise duty was being paid on the single yarn which was being used for doubling or multifolding.
J. The respondent companypany is engaged in the manufacture of yarn falling under tariff item No.
With him for respondent.
The Assistant companylector, central Excise vide his adjudication order dated 27th September ,1982 companyfirmed the demand raised in the show cause numberice by companying to the companyclusion that the yarn at its spindle stage, after it had been spun, was a fully manufactured product and duty was payable at that stage.
for Ms. M. Karanjawala Adv.
J U D G M E N T The following judgment of the companyrt was delivered Kirpal.
It manufactures single ply yarn and it also in the companyrse of its manufacturing process, does doubling and multifolding of the yarn.
