9911796707
TMI Blog1996 (7) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Appellant. None, for the Respondents. [Order per : G.R. Sharma Member (T)]. - The issue for determination in these appeals is whether duty can be charged when single ply yarn comes into existence at spindle point or duty should be charged after the yarn is subjected to winding, doubling, reeling etc. 2. The facts of the case are that the respondents herein are engaged in the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on parlance test, the respondents herein submitted that cotton yarn is marketed in different forms such as single or in multiple folds on hanks, on cones, on sized beams etc. and since in their case it was doubled yarn, therefore, duty stage for doubled yarn was only when it is doubled; that yarn in their case was fully manufactured when it is packed and stored. In the circumstances, the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty on the yarn lost in the process of winding, doubling or reeling. He therefore, submits that since duty is on yarn which comes into existence at the spindle stage when it is a single ply yarn; that that is the point or the stage it is dutiable for purpose of Section 3 of the Central Excises and Salt Act, 1944. He therefore, prays that the order of the Asstt. Collector may be restored and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be collected after winding, doubling and not before that. According to Section 3 of the CESA, 1944, duty is levied and collected on the goods produced or manufactured. The term `manufacture' has been defined under Section 2(f) of the Act. Section 2(f) is an inclusive definition and includes any process incidental or ancillary to the process of manufacture. Now the important question that arises is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and can be marketed as such and therefore, we hold that for purpose of levy of duty, it is spindle stage when single ply yarn is produced. We find that a number of decisions have been cited. All these decisions pertain to the question whether doubling of yarn amounts to manufacture. Doubling, winding and reeling are operations after spindle stage which is single ply yarn and therefore, they are n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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