9911796707
TMI Blog2002 (11) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the course of manufacture of double/multifold yarn from the stage of single yarn, yarn waste, commonly known as hard waste also arises. The said hard waste was being cleared by the appellant at nil rate of duty. 2. The authorities below have confirmed the demand of duty on hard waste cleared without payment of duty on the ground that no duty has been paid at the single yarn stage. As such the single yarn, which has gone into production of hard waste was non-duty paid and as such the duty is leviable on the same. Accordingly the Revenue has confirmed a demand of duty of Rs. 3,09,513/- (rupees three lakhs nine thousand five hundred and thirteen) against the appellant for the period April, 1990 to February, 1994. 3. Challenging the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n stage, they were not required to pay duty at the double stage yarn, in terms of Notification No. 47/90-C.E. However, the dispute in the present appeal relates to the hard waste, which the appellant have been clearing at nil rate of duty. The Revenue has not disputed this fact that the appellant had claimed nil rate of duty in respect of hard waste in their classification lists which were approved by the proper officers. The reasoning of the authorities below for invoking the longer period of limitation is that they have nowhere disclosed that such hard waste has arisen out of non-duty paid single yarn. In our views such a reasoning is not justifiable inasmuch as the appellants were paying duty at the double yarn and clearing hard waste at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held that at the stage of manufacture of Single Ply-Yarn there comes into existence an excisable item and it would be subject to duty upon its manufacture. It was held by the Supreme Court in the said matter that the liability to pay excise duty would arise on the manufacture of Single Ply Yarn and not after the same has been doubled or multifolded. In view of these decisions of the Apex Court the duty is payable at the stage of Single Ply Yarn. The extended period of limitation for demanding duty is invokable in the present matter as at no stage it was disclosed by the Appellants that they are manufacturing Single Ply Yarn which is captively consumed for making double or multifold yarn. The hard waste which has been shown by them in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g double or multifold yarn. 10. From the show cause notice dated 2-5-95 pointed out by the ld. Advocate, I find that at page 2 of the show cause notice following allegations was made : M/s. Shaktigarh Textile Industries Ltd., are engaged in producing single yarn as well as double multifold yarn. A portion of the single yarn so produced is captively consumed and used in producing double multifold yarn and the double/multifold yarn so produced were cleared with payment of proper Central Excise duty. But during the process of production of double/multifold yarn from non-duty paid single yarn some yarns are wasted and the assessee clear this waste as Hard Waste at nil rate of duty as per Tariff. A perusal of this para itself indica ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
