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TMI Blog2017 (3) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... y weight over acrylic fibre in the facts and circumstances of the case, therefore, the same is to be classified under chapter 52 of the Central Excise Tariff Act, 1985 which exempts from payment of duty - the duty cannot be demanded - appeal allowed - decided in favor of appellant. - E/2190/2007, 1010-1011/2008-Ex(DB) - Final Order Nos. A/60280-60282/2017-EX(DB) - Dated:- 16-2-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Shri Surjeet Bhadu Abhinav Kansal, Advocates for the appellant Shri Atul Handa, AR for the respondent ORDER Per Ashok Jindal As the issue involved in all these appeals is common, therefore they are taken up together and are being disposed of by this com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % dyed cotton yarn falling under chapter 52 and in the case of manufacturing process of cotton blended yarn under chapter 55, but it is not possible to segregate cotton waste and polyester waste from the waste generated during the manufacturing process of cotton blended yarn. Accordingly, the waste generated during the manufacturing process of cotton blended yarn is cleared without payment of duty. On being further asked, he stated that the separate record in respect of generation and sale of waste is maintained in part-I of the unit but the waste generated in the manufacturing process of 100% dyed cotton yarn and cotton blended yarn in part-II of the unit cannot be separated and is sold as cotton waste without payment of duty. From the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and cotton blended yarn, the waste generated therefrom is to be classifiable under chapter 52 or chapter 55 of the Central Excise Tariff Act or not. If so and on which quantity the appellant is required to pay duty. He submits that the waste generated in the second part of the unit cannot be separated as waste generated during the manufacturing is taken by suction process and being stored separately after complete lot wise of cotton blended yarn also stored in the same place as waste cannot be separated. In that circumstance, in the second part of the unit the waste generated is cotton waste which is not liable to be duty as per section note 9 of section 11 of the Central Excise Tariff Act. In alternate, he submits that as the Standard Inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record that, the appellant did not keep waste of cotton blended yarn and cotton dyed yarn separately. The waste remains the mixed waste. If at all, the duty is to be demanded, the same is to be demanded only on waste arising out of manufacturing of cotton blended yarn. The allegation of the Revenue is that the appellant has not provided the details of the waste arising during the manufacturing of cotton blended yarn. Therefore, the appellant is liable to pay duty on whole of the waste. The said analogy of the Revenue is not correct. If the case is so, then the Standard Input-Output Norms have to play the role and as per the said the Standard Input-Output Norms, for manufacturing kg of the acrylic/polyester blended dyed spun yarn, 1.06 kg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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