9911796707
TMI Blog2001 (5) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the manufacture of single yarn, multi-folded yarn and doubled yarn. On scrutiny of the records of the assessees, the Departmental Authorities found that the appellants were manufacturing single yarn and were further processing the single yarn into doubled/multi-folded yarn. The Department, therefore, alleged that since only doubled/multi-folded yarn was cleared from the factory, therefore, duty should have been paid on the price at which the Yarn left the factory since duty on the yarn was ad valorem. The assessees were not selling the yarn at the factory gate but were sending it to their depots on consignment basis without paying duty as their contention was that duty, was already paid on the basis of value determined under Rule 6 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commodity whether in a continuous process or otherwise, in such place or any premises appurtenant thereto specified by the Commissioner under sub-rule (1) shall be deemed to have been removed from such place or premises or premises immediately before such consumption or utilisation . Ld. Counsel submitted that thus the explanation under Rules 9 and 49, a fiction was created whether such consumption was deemed to be removed. Ld. Counsel submitted that in so far as single ply yarn was concerned, removal was complete the movement, it was taken for further processing into doubled/multi-folded yarn. Ld. Counsel submitted that the Apex Court in the case of Banswara Syntex Ltd. cited above had held that the process of doubling/multi-folding is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 112/94, dated 15-12-1994 clarified that detailed records of single yarn produced at spindle stage shall be maintained for accounting and that duty shall be paid at the time on normal price of clearance of double/muiti-folded yarn. 4D. It was submitted for the appellants that option was there either to pay duty on single yarn stage and avail exemption under Notification No. 26/94 as amended or pay duty on doubled/multifolded yarn stage and avail exemption under Notification No. 121/94, dated 11-8-1994. In support of this contention they cited and relied upon the decisions in the case of Dunbar Mills v. C.C.E. - 1989 (44) E.L.T. 500 and Rallis Machines Ltd. - 1992 (58) E.L.T. 232. 5. Ld. Counsel also submitted that the arguments adduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yarn which was cleared out of the factory when it was presented for clearance, therefore, it is the form at which duty should have been paid. He submitted that since duty was not paid at this stage, therefore, differential duty has rightly been demanded. 7. Ld. DR also submitted that the ratio of the decision of the Apex Court in the case of C.C.E. v. Banswara Syntex Ltd. cited by the appellant is not applicable to the facts of the present case inasmuch as what was provided in that decision was in regard to the RG.I stage. It was submitted that since the facts in the two cases are different, therefore, the ratio is not applicable. It was also submitted by the DR that the decision of the Apex Court pertains to the period when duty was spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removal, therefore, duty has correctly been paid on the single ply yarn on the basis of the cost data furnished in respect of the single yarn. In this view of the matter, we find that the question of removal of doubled yarn or multi-folded yarn did not arise in so far as payment of duty is concerned nor was the cost data in respect of doubled ply yarn or multi-folded yarn required. Further, we note that since duty was paid at the single ply yarn stage, no further duty was required to be paid in terms of Notification No. 26/94. We also note that there was an option available to the assessee either to pay duty at single yarn stage or doubled/multi-folded yarn stage. 10. The contention of the Revenue that the decision of the Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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