9911796707
TMI Blog2017 (1) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... ding, cabling or anyone or more of these processes, or conversion of any form of the said products into any form amounts to manufacture. In these sets of facts, investigation was conducted and during the course of investigation, all the records of the respondents were taken by the department, the statement of Smt. Sudesh Kumari, partner of the respondent was recorded on 13.11.2003. Thereafter a show cause notice was issued to the respondents on 3.4.2006 by invoking the extended period of limitation for the period 1.4.2003 to 13.11.2003 on the ground that the respondents are engaged in purchasing of grey yarn from market and were selling the same after getting it dyed manually from outside as such amounts to manufacture, therefore, the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same, but the said goods were dyed by others manually and yarn was sold in same form in which it was purchases. They have also by stressed that the yarn was duty paid and the appellants would have no hesitation in taking registration and paying duty as they could have availed cenvat facility had they believed that the activity being undertaken by them attracted duty. In this regard, it is observed that it is not in dispute that the appellants were purchasing the yarn in cone form and also selling in the same form and that they were not undertaking the process of dying which was got done from outside. Also, it is fact on record that they were converting the grey yearn procured by them from cone form to hank form for getting the yarn dyed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants in the instant case, but there is no resultant conversion of yarn by the appellants. It is noticeable that the said chapter notes do not stipulate that any process of conversion of the said goods would amount to manufacture, instead it is specified therein that conversion of the goods from one form to another amounts to manufacture, and evidently, there is no conversion of goods from one form to another in the instant case. Further, it is also not disputed that the appellants have received duty paid grey yarn in cone form and also sold dyed yarn in cone form, which indicates that overall duty payable is only in respect of process of dyeing which has not been undertaken by the appellants. From the above, it is conclusive th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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