For the manufacture of nylon yarn, the companypany imported caprolactum monomer.
The question relates to the levy of excise duty on these polymer chips.
The product imported was caprolactum Ultramid BS.
The assessee has described the process employed in its factory for polymerisation of caprolactum monomer.
In order to change the form of this substance and give it the required properties which enable textile yarn to be produced from it further processing is required in the companyrse of which, at an intermediate stage, polymer chips are produced.
3507 OF 1982 WITH TRANSFERRED CASE NOOF 1996 Arising out of Transfer Petition C No.
WITH CIVIL APPEAL NO.
The companypany paid customs duty as well as companyntervailing duty on its import of caprolactum monomer.
188 of 1983 J U D G M E N T Mrs. Sujata V. Manohar, J. These appeals and the transferred appeal rise a companymon question whether polymer chips manufactured by the assesses and used by them in the manufacture of nylon yarn can be classified, for the purpose of levy of excise duty, under Item 15A in Schedule I to the Central Excises and Salt Act, 1944, as it stood during the period 1962 to 1972.
This raw material was used by the companypany for manufacture of nylon yarn.
In the companyrse of processing of caprolactum monomer the companypany obtained at an intermediate stage a product called Polymer Chips, also known as Nylon 6 Chips, which were companysumed in the manufacture of the finished product, namely, nylon yarn.
For the sake of companyvenience we are period 1962 to 1972.
For the sake of companyvenience we are setting out the facts in relation to the transferred appeal pertaining to M s. Nirlon Synthetic Fibres and Chemicals Ltd. At all material times the companypany manufactured nylon yarn, a synthetic man made fibre under an industrial licence under an industrial licence granted by the Government of India.
