1997 (11) TMI 207 - AT - Central Excise

Summary

Issues involved:
1. Whether Central Excise duty on yarn is leviable on single yarn at spindle point or on doubled yarn at the time of clearance.
2. Whether duty on sized weight of the yarn is payable or duty is payable on unsized weight of the yarn.

Detailed Analysis:
1. The first issue pertains to the levy of Central Excise duty on yarn at different stages. The department argued for duty on single yarn at spindle point, citing Supreme Court precedents. However, the respondent contended that duty should be on doubled yarn at clearance, referencing Tribunal decisions. The Tribunal, following the Supreme Court judgment in a specific case, held that duty is leviable on single yarn at the spindle point, not on doubled yarn. Thus, the department succeeded on this issue in all appeals.

2. The second issue concerns the payment of duty on the sized weight of yarn versus the unsized weight. The Supreme Court's decision in a particular case established that duty is payable on the unsized weight of yarn. Consequently, the assessee succeeded on this issue in all appeals.

3. In one of the appeals, a dispute arose regarding the approval of a classification list and subsequent demand. The department erroneously included a demand in its records. The Tribunal found that since the demand was linked to the resolved issue of duty levy on single yarn, which was decided in favor of the department, the demand was sustainable.

4. Another appeal involved a challenge by the department on the issue of duty levy on single yarn at spindle point. The Tribunal allowed the department to raise this point, emphasizing that it was a legal issue and not a new plea. Following the Supreme Court's decision, the duty was held to be leviable on single yarn at the spindle point.

5. The matter of determining the percentage of loss between yarn at the spindle point and clearance stage was also raised. The Tribunal remanded the issue to the Assistant Commissioner for reconsideration, directing the assessee to provide evidence during readjudication. The Tribunal clarified that the main issues in the remaining appeals were consistent with the conclusions reached based on the Supreme Court decisions.

In conclusion, all five appeals were disposed of based on the above determinations.