9911796707
TMI Blog1997 (7) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... yarns under different tensions, in the texturising machine by feeding yarn at different speeds and at different tensions, a slubbing effect appears on the resultant twisted yarn which is called Taspa yarn. A Show Cause Notice was issued on 29-1-1990 demanding duty on Taspa yarn for the period 13-9-1986 to 27-11-1987 alleging that the Taspa yarn produced is of the category of Special yarn covered by Heading 56.06 of the Central Excise Tariff Act, 1985; duty demand mentioned in the Show Cause Notice was Rs. 3,47,674.64. The Additional Collector of Central Excise & Customs, Surat adjudicated the matter. It was held that the yarn manufactured answered the description of special yarn under Heading 56.06. The demand was confirmed a penalty of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants in his statement on 12-3-1988 has stated that they have produced Taspa yarn in which Nylon yarn of 20 deniers and Polyester yarn of 30 denier were used. He described the process of manufacture saying that they have one Lohia machine and in the manufacture of Taspa yarn, the two yarns are simultaneously fed in the machine with different tensions. Polyester yarn is fed with a higher tensions and Nylon yarn is fed with a lower tension. The yarn which is running at higher tension gets shrunk because of its Polyester quality while other yarn which running at the lower tension being Nylon yarn does not get shrunk, but gives the slub effect; it is seen that the appellants heavily relied upon the Departmental clarification by way of Trade N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason for taking the yarn outside the other earlier Chapters 50 to 55 and bringing it under Chapter 56. In this view of the matter it is also not necessary that only when the product is Taspa yarn with a core yarn for it to be classified under Heading 56.06, for the reason that as noted the Heading 56.06 covers other special yarns. The speciality of its construction as been noted above in our view there will be a sufficient ground, in such circumstances to uphold the classification of this product as other special yarn under sub-heading 5606.00 CETA. In this view of the matter there is no reason to interfere with the impugned order except that we are of the view that the penalty on the appellants is not warranted, in the circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
