9911796707
TMI Blog1981 (3) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... process of sorting, cutting (by fibre cutting machines designed for converting two/crimped uncut waste into polyester fibre), garnating and carding and further mixed it with cellulosic staple fibre for converting into sub-standard mixed yarn. 3. The appellants had obtained licence for manufacture of yarn and were complying with Central Excise formalities including payment of duty on the yarn manufactured in their factory. 4. It was alleged against the appellants that they had manufactured polyester fibre out of polyester crimped uncut waste with the help of the aforementioned processes without obtaining Central Excise licence for manufacture of fibre, and without complying with the other Central Excise formalities, including payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn and that these would not normally be classifiable as wastes of synthetic fibre or yarn and (ii) that some of the undrawn wastage could be generated and then carded and combed to be formed into tops for blending with waste. After careful consideration of the issue, the trade is informed that while solidified waste was definitely not fibre, in the case of undrawn spinning waste, excisability will be decided upon the basis of their capability for use in the manner as described at (ii) above. In other words, the excisability in each case will be determined on merits. Attention of the trade is also invited to the Ministry s Notification No. 53/72-C.E., dated 17-3-1972 wherein certain categories of wastes have been prescribed. The trade is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same and were liable to pay duty on the fibres as allegedly manufactured in the factory. The fact of obtaining polyester crimped uncut waste and its quantity is not at all in dispute because the Collector has conceded appellants contention regarding the disputed quantity of 720 kgs of such waste obtained directly from Swadeshi. 11. It is only a matter of fact which has been already accepted by the Board as pointed out by the appellants with the help of Bangalore Collectorate s Trade Notice that post-drawn waste is generated only after the material which goes into the manufacture of fibre attains the necessary qualities of fibre. It has, therefore, for all purposes to be treated as fibre, but since it conforms to the category of was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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