9911796707
TMI Blog1981 (1) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tariff "as fibres and yarn other than textured yarn." and not under sub item (ii) of the aforesaid item as held by the lower authorities. 2. The main points urged by the petitioners in support of their case are as follows :- (a) the process of manufacture undertaken by the petitioners for giving bulk to the yarn is a simple process of steaming and dyeing of duty paid base yarn. This process cannot be considered as bulking which is a sophisticated process and, therefore, the yarn in question cannot be considered as bulked yarn. (b) In any case bulked yarn cannot be considered as textured yarn. It is not recognised as such in the trade. Explanations I and II to Tariff Item 18 Central Excise Tariff, as they are worded, would show tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and parallel filaments (see Textured Yarns). Note 2 : Staple Yarns. The increased bulk may be obtained by blending together during yarn spinning, fibres of high and low potential shrinkage, e.g. high-bulk acrylic yarns. During subsequent hot or wet processing, the greater contraction of the high shrinkage fibres causes the yarn to contract longitudinally, and the low-shrinkage fibres to buckle, thus increasing the bulkiness of the yarns." 5. The above definition shows that bulked yarn could be produced not only out of continuous filament yarn but also out of staple yarn. Moreover, the process of converting staple yarn to bulked staple yarn is by hot or wet processing. Thus the normal method of bulking staple yarn is by hot or wet proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd stretch yarn. Explanation III. - ................., From the entry as reproduced above it could be seen that the words, "but does not include bulked yarn and stretch yarn" apply not only to category (iv) of Explanation I but to all the categories (i) to (iv) of Explanation I. In other words, the inclusive definition applies not only to continuous filament yarn but also to spun discontinuous yarn. Explanation I applies to fibres and yarn other than textured yarn and by virtue of the words, "but does not include bulked yarn and stretch yarn" it is clear that bulked yarn would not be covered by sub-item (i) of Item 18 Central Excise Tariff. Explanation II makes the matter still clearer and leaves no doubt that bulked yarn would be deem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for deciding this case. 10. At the time of personal hearing, the petitioners also raised a plea that they had not used power in the manufacture of impugned goods and since only goods manufactured with the aid of power would be covered under Tariff Item 18 Central Excise Tariff, the impugned goods are not dutiable at all. Government observe that the petitioners had not taken this plea either at the original or the appeal stage. Even in their revision application they have not raised this point. They have raised this plea belatedly at the time of personal hearing. Whether the petitioners used power for the manufacture of the impugned goods or not is a question of fact to be determined by the assessing officer. Govt. cannot entertain this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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