2000 (7) TMI 366 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, Mumbai held that duty of Rs. 1,05,618/- is required to be paid on doubled yarn manufactured by the assessee. The tribunal confirmed the view that doubling of yarn amounts to conversion and is deemed manufacturing. The advocate cited a Supreme Court judgment to argue that doubling yarn does not create new material and is not manufacturing. However, note 1 to chapter 52 was later amended to include doubling of yarn as a deemed manufacturing process. The tribunal waived the duty demanded pending further review.