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TMI Blog2019 (2) TMI 1237X X X X Extracts X X X X X X X X Extracts X X X X ..... cs cannot be manufactured using unstable yarn which is not twisted. The appellant in their appeal memoranda also have themselves stated that unstable yarn cannot be used for multifilament and Narrow Woven Fabrics is produced by the process of weaving - The law is very clear, if the yarn produced at the intermediate stage is twisted /texturised before use for weaving the same is liable to Central Excise duty. However, if twisted/terturised yarn does not come into existence before weaving, it may not be taxable - the facts needs verification. Appeal allowed by way of remand. - Appeal No. E/1532/2010-DB - A/10354/2019 - Dated:- 21-2-2019 - Mr. Ramesh Nair, Member (Judicial) And Mr. Raju, Member (Technical) Shri Amal Paresh Dave, Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Kanti Beverages Pvt. Limited 2016 (344) ELT 979 (Tri. Del.) (e) Shyam Textile Mills vs. CCE, Ahmedabad 2015 (328) ELT 390 (Tri. Ahmd.) 4. He argued that they did not use oil which is essential to make the product multifilament yarn marketable. He produced certificate from the Chartered Engineer who opined as follows:- After looking the process of manufacturing of narrow woven fabric, I have seen that it s stepwise process. I found that first of, all by the help of extruder machine the flat filament yarn is produced. This flat filament are reeled on to the bobbins. The filament are not sound enough and its breakable. To increase the strength of filament it is feed to the machine named D.W. i.e. Draw Twister, which is avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... namely yarn twister, used by the appellant. The said certificate asserts that twisting could not be done on the said machine and without twisting the product is not having a long life. Both the certificates have been obtained after the impugned order was passed and the said certificates were not available before the Commissioner (Appeals). 5. Ld. Counsel also relied on the Board Circular No. 16/90-CX.1 dated 23.05.1990 wherein the following has been clarified:- 3. The manufacturing process of synthetic filament yarns and synthetic monofilaments in brief is that raw material is taken, subjected to crushing, then it is melted and polymerized to obtain polymer chips. Thereafter the polymer chips are melted and extruded through the spinne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or textured yarn is subjected to the process of dyeing before application of coning oil. After dyeing the resultant product is subjected to the process of application of coning oil. They are then subjected to quality control tests and graded and packed. The trade is of the view that finished marketable synthetic filament yarn or monofilament come to existence, only after application of coning oil, in the form of POY or fully drawn yarn or textured yarn/ monofilament. 5. In the case of simultaneous draw-texturising, the machines are such that no flat yarn (drawn yarn) comes into existence at any stage. On the other hand the undrawn yarn is straightaway converted into textured yarn. From the above manufacturing process it is clear that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appellant did not have yarn twisting machine. It has also been claimed that the untwisted yarn cannot be used for the purpose of weaving as the same is not a stable product. From the above, it is seen that there is contradiction in the claim that the appellant. They have stated that they did not have twisting machine. In the statement of Shri Jitendra Kumar P. Mansuriya, Partner of the appellant, it has been stated that they did not have twisting machine but the appeal memoranda suggests that they have the machine. The facts therefore needs verification. 8. It is obvious that Narrow Woven Fabrics cannot be manufactured using unstable yarn which is not twisted. The appellant in their appeal memoranda also have themselves stated that uns ..... X X X X Extracts X X X X X X X X Extracts X X X X
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