9911796707
TMI Blog1996 (10) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... was issued denying the benefit of exemption and seeking to charge differential duty short levied. The Deputy Collector, in his findings interpreted the notification. He observed that whereas the term `texturised yarn appeared in the tariff by way of Explanation to Tariff Item No. 18(ii), the word `crimping was not specifically referred. Referring to the same definition, he observed that crimping was one method of texturising the yarn. He, therefore, held that the benefit of the subject notification was available to the waste produced by the assessees. In his discussions, he also observed that if this benefit was to be denied, the assessee would end up by paying duty at a rate higher than the rate at which the good yarn was cleared. He al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ease of reference, the text is reproduced below : In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts wastes arising during the manufacture of crimped yarn and falling under sub-item (iv) of Item No. 18 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), from so much of duty of excise leviable thereon as is in excess of two rupees per kilogram. 6. It is the claim of Revenue that the wording `crimped yarn should be so interpreted as to exclude yarn texturised by any other method. It is the claim of the appellants that such a restrictive interpretation is not warranted. 7. The Explanation, occurring in the subject tariff item, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t undertaking crimping of yarn. If interpretation of the notification is to be made in the manner as to deny the benefit to waste of crimped yarn, but to extend it to looped, yarn waste or yarn waste of texturised in any other method, then the two wastes would attract different rates of duty although their physical properties and their end-use would be exactly alike. The strict interpretation of this notification would result in absurdity. This, according to the Supreme Court, is not permissible. A liberal interpretation will necessarily have to be placed on this notification. 11. Shri G.D. Sharma, ld. D.R. in his arguments made a mention that by an arithmetical calculation, it can be established that the absurdity, namely, the good yarn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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