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TMI Blog1994 (9) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... s waste arising in the manufacture of man-made filament yarn and not in the case of waste of duty paid filament yarn arising in the manufacture of texturised yarn or defective textured yarn. The same is also not known in trade or common parlance as damaged textured yarn or waste of texturised yarn, it is only a waste of duty paid filament yarn and is as such wholly exempt from duty in terms of Notification No. 239/83. Approving the classification list directing the payment of duty @ Rs. 9/- per kg. as such waste was not tenable. In the result, the appeal succeeds and is accordingly allowed. The impugned order is set aside with directions for classifying the said waste, as exempt from duty, as against Rs. 9/- per kg." 2. Briefly stated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes; that duty on filament yarn is required to be paid before it is used in the manufacture of texturised filament yarn; that the rate of duty on texturised filament yarn was Rs. 5 per kg during the material period if the duty on base yarn (filament yarn or POY) was paid; that the direction of the Asstt. Collector that duty on the waste arising in the process of texturising of the yarn should be paid at a rate of Rs. 5/- per kg does not appeal to common sense in as much as waste cannot be charged at a higher rate than the virgin material. It was also contended by the respondents that as the waste produced by them was not classifiable under Tariff Item 18-IV, Notification No. 53/72 will not be applicable on this waste. It was also pleaded th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rate of Rs. 9/- per kg. prescribed under the then Tariff Item 18-IV; that the amending Notification No. 239/83 exempted non-cellulosic waste falling under sub-item IV of Item 18 of Central Excise Tariff and arising during the manufacture of non-cellulosic texturised from the whole of duty of excise leviable thereon; that in view of the above, waste texturised yarn was liable to duty at the rate of Rs. 9/- per kg as was held by the Asstt. Collector and that Notification No. 239/83 was not applicable to the goods in dispute. 5. Heard the submissions of the ld. SDR and perused the written submissions made by the respondent. The issue for decision before us is whether non-cellulosic waste arising in the manufacture of texturised yarn out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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