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TMI Blog1983 (10) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... e Order-in-Appeal of the Appellate Collector of Central Excise, Calcutta, is whether cotton yarn on which duty has been paid under Item 18A of the Central Excise Tariff Schedule and staple fibre yarn on which duty has been paid under Item 18, when twisted and doubled together to produce another object, should be made to pay duty under Item 18E ibid. The Appellate Collector has held that the answer is in the affirmative. Against this decision, the appellants had filed their revision application which has now been transferred to us. 3. The orders of the authorities below covered five specific sorts of yarn described in five classification lists numbered 7 to 11. While each of them is made by doubling two yarns, the composition is different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioners themselves, the nylon yarn was purchased from the market. The cotton yarn and the nylon yarn were twisted or intertwined, and the resultant yarn was used by the petitioners in the manufacture of their fabrics. 7. In the above case, the High Court held that by merely intertwining the strands of cotton yarn and nylon yarn it was difficult to hold that a new product came into existence. The High Court further observed that the process of blending adopted by the petitioners was unique in their case and such blended yarn was not available in the open market. The High Court took note of affidavits filed by the petitioners of traders dealing in textiles and yarns which indicated that the twinkle yarn was not a product known i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties, but submitted that he should be allowed to urge it before us. We considered that in the interests to justice he should not be debarred from raising this plea, and therefore allowed him to do so. 11. We asked Shri Gopal Prasad whether in view of the fact that the five yarns had different compositions, containing both cellulosic and non-cellulosic material, and considering also the fact that Item 18E referred to non-cellulosic spun yarn , he wished to urge that any of the products in question would be excluded from the scope of Item 18E in view of its composition. Shri Gopal Prasad stated that he would not argue on this point, since he was relying on his main ground that the products could not be considered as spun yarn. 12. Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tayal submitted that this related to the period prior to the amendment of Item 18E and would not apply to the present case. 15. In the result Shri Tayal submitted that the products in question had been rightly held as coming within the scope of Item 18E, and that this Item would cover them, provided their composition conformed to the description of that Item, which requires that man-made fibres of non-cellulosic origin, other than acrylic fibre, predominate in weight. 16. We have carefully considered the arguments advanced on both sides. It may be observed that we had occasion to deal with another appeal of the same appellants regarding the same type of product, in our Order No. 553/83-D, dated 1-9-1983. (In that case Shri Gopal Pras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Messrs Aditya Mills Ltd. We had held in that case that the process of doubling or twisting was a process of manufacture. That decision would be clearly applicable to the present case. 19. The judgment of the Bombay High Court in the case of Piramal Spinning Weaving Mills Ltd., on which Shri Gopal Prasad has relied, can be clearly distinguished from the present case, as will be seen from what has been stated in para 7 above. In that case the petitioners were manufacturers of fabrics. The twinkle yarn which was the subject of those proceedings was made by them solely for the purpose of being used in the manufacture of their fabrics. In coming to its conclusion in that case the High Court gave great weight to the fact that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... weight of the fabric. That view would be applicable to the present case. 21. Shri Gopal Prasad had filed copies of the classification lists of the five products in question, giving the detailed composition of each and showing the percentage of cotton, cellulosic man-made fibre and non-cellulosic man-made fibre. From the details given in the copies of the classification lists filed by Shri Gopal Prasad, it would appear that none of the five products satisfies the condition that non-cellulosic man-made fibre should predominate in weight. Sub-item III of Item 18 as in force at the relevant time covered cellulosic spun yarn, that is yarn, in which man-made fibre of cellulosic origin predominated in weight. Such of the products as conform to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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