9911796707
TMI Blog1985 (3) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... owned by the Appellant has three separate departments for spinning, weaving and processing. Yarn manufactured in the Spinning Department is removed/cleared to the Weaving Department where it is woven into cloth. It is then cleared and sent to the Processing Department; (b) in the manufacture of cotton fabrics classifiable under Item 19 of the First Schedule to the Act, the Appellant uses cellulosic spun yarn and cotton yarn (classifiable under Items 18 and 18A of the said Schedule respectively); (c) in terms of Notification No. 132/77, dated 18-6-1977, cellulosic spun yarn and cotton yarn were exempted from the whole of the duty leviable when used for weaving of cotton fabrics in a composite mill. A composite mill was defined to mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case may be, under Notification No. 131/77, dated 18-6-1977 ; (g) the Appellant had, when the Notification No. 226/77 came into force, i.e., on the mid-night of 14th/15th of July, 1977, not merely packed and loose stocks of cotton fabrics but also considerable quantities of fully manufactured yarn cleared from the Spinning Department and under process in the Weaving Department. The cotton fabrics manufactured by the Appellant were not permitted to be cleared unless duty was paid on yarn in accordance with Notification No. 226/77. Accordingly, the Appellant was compelled to pay an amount of ₹ 10,41,792.31 towards duty in respect of the fully manufactured cotton fabrics lying in stock on the mid-night of 14th/15th July, 1977; (h) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vent is the manufacture. It is the time with reference to which the rate of duty must be reckoned and applied that removal in terms of the rules assumes importance in terms of Rule 9 of the Central Excise Rules. If the taxable event as well as the removal had both occurred prior to the point of time when Notification No. 226/77 came into operative force, obviously it cannot be contended that the said Notification has any application; (c) in the facts and circumstances of the case, the yarn in question became the subject of levy on its manufacture which was to have been computed and collected, in terms of Rule 9 at the point of removal. No duty was either leviable or computed or collected because of the exemptions in force at the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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