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TMI Blog2018 (9) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... o be classified under chapter 52 of the Central Excise Tariff Act, 1985 which exempts from payment of duty - appeal allowed - decided in favor of appellant. - Appeal No. E/2511/2011 - ORDER No. A/62662 / 2018 - Dated:- 20-8-2018 - Mr. Ashok Jindal, Hon'ble Member ( Judicial ) And Dr. Devender Singh, Hon ble Member ( Technical ) For the Appellant : Shri Surjeet Bhadu, Advocate For the Respondent : Shri Bhasha Ram, AR ORDER Per : Mr. Ashok Jindal The appellant has filed this appeal against the impugned order. 2. The facts of the case are that the appellant is a 100% EOU engaged in the manufacture of yarns falling under chapter 52 and 55 of the Schedule to the Central Excise Tariff Act, 1985. During the preventi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 u nit 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 above it is alleged that in part-II unit, two types of waste are generated (a) from the manufacturing of 100% dyed cotton yarn under chapter 52 and (b) from the manufacturing of cotton blended under chapter 55. It was the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that in the second part of the unit is manufacturing 100% cotton dyed yarn and cotton blended yarn. The machines are cleared as per lot wise. It is fact on 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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