Central Excise - MMF - Dutiability of waste arising during the manufacture of texturised yarn and crimped yarn - Clarification regarding - Central Excise - 19/MMF/89-CX.1

Central Excise - MMF - Dutiability of waste arising during the manufacture of texturised yarn and crimped yarn - Clarification regarding Circular No. 19/MMF/89-CX.1 Dated 28-11-1989 [From F. No. 54/14/88-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - MMF - Dutiability of waste arising during the manufacture of texturised yarn and crimped yarn - Clarification regarding. A doubt has arisen whether waste arising during the manufacture of texturised yarn will be covered under Notification No. 214/79, dated 23-6-1979 which exempts waste from the manufacture of crimped yarn. Wastes arising during the manufacture of the crimped yarn and falling under sub-item (iv) of Item No. 18 of the old Central Excise Tariff were exempt from duty of excise leviable thereon as is in excess of Rs. 2 per Kg. under Notification No. 214/79, dated 23-6-1979. However, this notification was subsequently rescined w.e.f. 1-7-1983. It appears that crimping and texturising are different processes. In crimping process POY is passed through a single heater whereas in texturising the POY is passed through two heaters. A doubt was expressed whether the wastes arising during the manufacture of texturised yarn can also be extended the exemption under Notification No. 214/79 or not. It may be mentioned that some of the units, though were undertaking the process of texturising have declared their wastes as crimped yarn wastes. 2. The matter was referred to the Chief Chemist for his expert views who opined as under — "A textured yarn, as defined in books is any yarn modified in such a way that its physical and surface properties have been changed. The term principally implies that a different texture has been imposed on the yarn that will in turn manifest itself in fabrics made of such yarns. Textured yarns may be divided into those of which the filaments are crimped, coiled, curled and looped. 'Crimped Yarn' as defined as 'a textured yarn in which the deformation is a series of alternate, sharp elbows and arms." From the above two definitions it is class that a 'crimped' yarn is one kind of textured yarn, the other being coiled yarn, curled yarn and looped yarn. The Notification 214/79-C.E. exempts wastes arising during the manufacture of crimped yarns only. Since all textured yarns cannot be treated as crimped yarn, those wastes obtained during the manufacture of other textured yarns are not covered by the Notification. 3. As per the 'Textiles Terms and Definitions', crimp refers to waviness of a fibre. Textured yarn refers to yarns that have been processed to introduce durable crimps, coils, loops or other fine distortions along the length of the fibres or filaments. 4. It is clear from the Textile Literature and also report of the Chief Chemist and field formations that crimped yarn is one kind of texturised yarn, the others being coiled yarn, curled yarn and looped yarn. The Notification 214/79-C.E., dated 23-6-1979 exempts waste arising during the manufacture of crimped yarn. Since all textured yarns cannot be treated as crimped yarn and as the notification is specific for waste arising during the manufacture of crimped yarn, wastes obtained during the manufacture of other texturised yarn are not covered by the aforesaid notification. So the benefits of Notification 214/79-C.E., dated 23-6-1979 should be restricted only to the wastes arising during the manufacture of crimped yarn.