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TMI Blog1984 (4) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 125/75-C.E., dated 12-5-1975. In order to facilitate the understanding of the issues involved in this appeal, we reproduce below the Tariff entry as well as the exemption notification as in force at the material time :- 18 Rayon and Synthetic Fibres and yarn Tariff- Item No. Description of goods Rate of duty Basic 18. Rayon and Synthetic fibres and yarn including Textured yarn, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power. (i) Fibres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. (iii) Other Textured Yarn Ninety five Rupees per kilogram Vide Notification No. 125/75-C.E., dated 12-5-1975. 2. The appellant stated that during the relevant period they were engaged in dyeing yarn. They used to receive un-dyed acrylic yarn from the traders in the market and return the same to them after dyeing on payment of job charges. During the dyeing operation, because of passage of steam, the hand-knitted yarn acquired a degree of fluffiness or bulk which, according to the Department, amounted to texturising. The appellants cleared the dyed yarn on payment of texturising duty of ₹ 10.00 per kg. and this duty is not the subject matter of this appeal. Subsequen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and a customer purchasing the said material from the market could not be called upon to prove the duty paid character of that material. The aforesaid judgment on this point had not been over-ruled by any subsequent judgment. The appellants asserted that the onus was on the Department to prove that base stage duty on the yarn received by the appellants from the market had not been paid and even were the Department was able to discharge that onus, the demand for base stage duty should have to be made against the spinning mill which manufactured the base yarn and not the appellants. The appellants added that besides the purchase challans, they had submitted some gate passes also to the Central Excise authorities and it was for the Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a presumption would be drawn only in cases where the exemption notification contained a specific deeming provision to that effect, as for example, in Notification No. 71/76-C.E., dated 16-3-1976 relating to paper and paperboard. 4. We have carefully considered the matter. The liability to pay base stage duty on yarn arose under Tariff Item 18(i) and that liability was on the spinner of that yarn. There were cases where the spinning mills manufacturing the base yarn were further texturising the yarn also. In that case, further duty under Tariff Item 18(ii) would have been payable on texturised yarn. However, in order to obviate the need of having to pay the duty twice, the Tariff entry as well as the exemption notification made the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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