1997 (12) TMI 356 - AT - Central Excise

Summary

The judgment by the Appellate Tribunal CEGAT, Mumbai involved an application for waiver of pre-deposit of duty of Rs. 36.52 lakhs and a penalty of Rs. 75 lakhs. The applicant argued that the autoconer used in winding yarn on bobbins is essential for making the yarn marketable and should be considered capital goods. The departmental representative disagreed, stating that winding does not result in a new commodity and does not qualify as a manufacturing process. The Tribunal found in favor of the applicant, waiving the pre-deposit and stay their recovery.