9911796707
TMI Blog1992 (8) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... hold them in the said position. This arrangement is popularly known as warpsheet or tyre cord warpsheet. According to the petitioners, the said warpsheet is classifiable under Tariff Item No. 22 or in the alternative under Tariff Item No. 18. 2. Prior to 1st March 1975, the petitioner company paid excise duty on rayon tyre yarn which was manufactured, as aforesaid, by holding the rayon tyre yam in parallel length-wise arrangement held together with loose cotton threads breadth-wise. The respondent department accepted the petitioners' contention and the classification made in the returns and they were allowed to clear the said warpsheet. No separate duty was paid on yarn and warpsheet as it was correctly understood that warpsheet was not s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment disposed of all the four show cause notices mentioned above. The petitioner, feeling aggrieved by the said order, whereby the contention of the petitioner company was rejected by, inter alia, holding that the warpsheet manufactured by the petitioner company was classifiable under Tariff Item No. 68, has preferred this writ petition. 6. Rule was issued and after hearing both parties, interim stay and injunction were ordered on llth October 1979. 7. We have heard Mr. Ketan Parekh appearing for the petitioners instrutted by M/s. Amarchand Mangaldas Hiralal Shroff Co., Advocates, and Mr. R.V. Desai for the respondents. 8. The contention of the respondent department appears to be that warpsheet manufactured by the petitioner co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor of Central Excise, Calcutta, 1983 E.C.R. 1625, wherein it has been held that warpsheet is nothing but a rayon cord and is, therefore, classifiable under Tariff Item No. 18. The said judgment was arising out of judgment of Calcutta High Court in The Collector of Central Excise, Calcutta, v. Madura Coats Limited, 1982 (10) E.L.T. 129 (Cal.) = 1982 E.C.R. 352D (Calcutta) decided on 28th of February 1980. After a detailed discussion on the nature of warp sheet in paragraph 7 of the judgment, it was held as follows :- "In order that an article should be considered as 'goods' within the meaning of Entry 68, two conditions should be fulfilled, namely, (1) it is a new article obtained through manufacturing process and (2) such article having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. 12. This will dispose of the respondents' contention in show cause notice dated 16th November 1978 at Exhibit 'T'. 13. As regards the 2nd and 4th show cause notices at Exhibits 'W' and 'Z', they relate to the levy of excise on the rayon content in the warpsheets exported. For this purpose also the reasoning of the department is that it is a product freely marketable and exported out of India and, therefore, they have claimed levy of excise duty on the rayon content in the warpsheets. Since, however, we have held that warpsheet is nothing but rayon cord and is a product which is used in the manufacture of tyre, under Rule 13 of the Central Excise Rules this product is totally exempt from any levy for export. This will dispose of the 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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