Synthetic filament yarn/monofilaments - Dutiability of

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..... onofilaments (which are still semi-finished and could be stretched three to four times of the original length) at this stage known as take up stage, before the filaments are subjected to the process of drawing or draw-texturising and applying coning oil, etc. 2. The audit was of the view that duty should be collected as soon as the filaments come out of the spinnerettes and before they are taken for drawing or draw texturising. 3. The manufacturing process of synthetic filament yarns and synthetic monofilaments in brief is that raw material is taken, subjected to crushing, then it is melted and polymerised to obtain polymer chips. Thereafter the polymer chips are melted and extruded through the spinnerettes. This is known as spinning st .....

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..... s required the drawn yarn or textured yarn is subjected to the process of dyeing before application of coning oil. After dyeing the resultant product is subjected to the process of application of coning oil. They are then subjected to quality control tests and graded and packed. The trade is of the view that finished marketable synthetic filament yarn or monofilament come to existence, only after application of coning oil, in the form of POY or fully drawn yarn or textured yarn/ monofilament. 5. In the case of simultaneous draw-texturising, the machines are such that no flat yarn (drawn yarn) comes into existence at any stage. On the other hand the undrawn yarn is straightaway converted into textured yarn. From the above manufacturing pro .....

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..... , at the take up stage when the monofilaments have just come out of the spinnerettes and have been quenched, they are semi-finished and their properties are normally inadequate for subsequent use in textile processes and they must then undergo a drawing process. Therefore, it appears not proper to collect duty at the semi-finished stage, keeping in view the Supreme Court's decisions in the cases of Bhor Industries and M/s. Union Carbide. 8. In view of the above the Board is of the view that the audit's contention is unreasonable and cannot be justified. It would be proper and just if duty is collected only after the emergence of the finished POY or fully drawn yarn or the drawn texturised yarn or monofilament as the case may be. It is rep .....

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