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2007 (2) TMI 565 - AT - Central Excise
Issues Involved:
1. Rectification of mistake in Tribunal's order regarding duty liability on single cotton yarn waste during conversion. 2. Interpretation of duty payable on single yarn before its captive consumption. Analysis: 1. The judgment pertains to the Appellate Tribunal CESTAT, Ahmedabad, regarding the rectification of a mistake in an earlier order related to duty liability on single cotton yarn waste during conversion. The Tribunal had remanded the matter to the original adjudicating authority for re-quantification of duty liability. The issue raised was whether duty was payable on the quantity of single cotton yarn represented in the waste during conversion. The Tribunal held that duty was payable on single yarn before its captive consumption for a specific period, favoring the Revenue's stance. However, it noted that duty had already been paid on doubled, cabled, and multi-folded yarn, which would be exempted if duty was paid on single yarn. The Tribunal directed the authorities to neutralize the duty paid on doubling yarn against the duty liability on single yarn. 2. The Revenue contended in a Review of Order Made (ROM) application that the Tribunal's order did not address the issue of single yarn contained in the waste arising during doubling. The Tribunal, in its response, clarified that it had indeed decided the issue by stating that duty was required to be paid on single yarn before its captive consumption, indicating that the waste arising during doubling would be included in the duty liability. Therefore, the Tribunal found no merit in the application for rectification and rejected the ROM application. In conclusion, the judgment clarifies the duty liability on single cotton yarn waste during conversion, emphasizing the obligation to pay duty on single yarn before its captive consumption and addressing the issue of waste arising during the doubling process. The decision upholds the Tribunal's earlier order and dismisses the Revenue's application for rectification.
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