2000 (7) TMI 417

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..... harma, Member (T)]. This is a case of demand of duty on alleged shortage of yarn found at the time of physical verification of the stock. 2. The appellants are manufacturing the yarn. Single ply yarn as it appears at the spindle stage is dutiable. In the instant case, this yarn is captively consumed by the appellants in the manufacture of double yarn. the department at the time of physical .....

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..... albir Singh, ld. Advocate submits that the department had actually not given any thought that while converting the single ply yarn into multi-folded/doubled yarn, the waste occurred. He submits that these wastes arose only after yarn is duty paid at single ply yarn stage. He submits that these wastes had nothing to do with the duty part because the duty was paid at the single ply yarn stage. He su .....

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..... yarn at the spindle stage, he could not point out any finding. He submits that therefore the matter may be referred back to the Commissioner (Appeals). 5. Heard the rival submissions. We note that there is no indication as to how the shortages were worked out and whether the shortage was of non duty paid single yarn or it was difference between single ply yarn and the doubled ply yarn. We note t .....

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