2000 (3) TMI 1033 - AT - Central Excise

Summary

Issues:
Manufacture of man-made blended yarn, duty liability at the stage of single ply yarn, correct application of waste norms during manufacturing.

Manufacture of Man-Made Blended Yarn:
The appellants were manufacturing single yarn and doubled/multifolded yarn without entering the quantity of single yarn in their registers. Show cause notices were issued for duty demand, which the Assistant Collector confirmed. Appeals against these orders were dismissed by the Commissioner (Appeals). The duty liability at the stage of single ply yarn was affirmed based on the Supreme Court ruling that single ply yarn is a manufactured product, and doubling or multifolding does not create a new product.

Duty Liability at the Stage of Single Ply Yarn:
The counsel for the appellants did not dispute the duty liability at the stage of single ply yarn. The Apex Court precedent was cited to support the argument that single ply yarn is a manufactured product, and duty must be discharged at that stage. The duty liability at this stage was affirmed by the authorities.

Correct Application of Waste Norms During Manufacturing:
The appellants contested the waste norms applied during the manufacture of doubled yarn from single yarn, arguing that the waste norm should have been 0.30% instead of 0.35%. However, their contention was not accepted as they failed to maintain records of the issuance of single ply yarn for manufacturing doubled/multifolded yarn. The authorities correctly assessed the waste norm at 0.35% in most appeals, except for one appeal where the norm was modified from 0.75% to 0.35% due to lack of a valid reason for deviation.

Conclusion:
The appeals of the appellants were dismissed, except for a modification in one appeal where the waste norm was changed from 0.30% to 0.35%. The validity of the impugned orders was not challenged on any other grounds. The judgment addressed the issues of duty liability at the stage of single ply yarn and the correct application of waste norms during manufacturing, providing detailed reasoning for the decisions made.