9911796707
TMI Blog1996 (1) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not apply to clearances of yarn from a factory having facilities (including plant and equipment) for producing single yarn". The result is that the exemption enjoyed by the "Integrated Units" in the matter of payment of Excise duty of certain products has been withdrawn. The relevant facts are as under :- 3. The petitioners are the Bombay Mill Owners Association. Though some of their members have a unit producing single yarn, most of the members have "Integrated Units" which, apart from the production of single yarn, also carry on the processing of yarn such as doubling and/or mercerising. We are, in this case, concerned with the doubling process. While a person carrying on only doubling process is exempt from the levy of excise d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s class of independent processors of yarn, who are generally small job workers and powerloom weavers, who were entitled to exemption. In view of this, what has been done by adding the impugned proviso is that the exemption contained in the said notification at Exh. "B" would not apply to clearances of yarn from a factory having facilities (including plant and equipment) for producing single yarn. If, therefore, the "integrated units" like most of the members of the petitioner association, who carry on the post-spinning processes, such as doubling, also have facilities (including plant and equipment) for producing single yarn, they would cease to enjoy the benefit of the exemption notification at Exh. "B" by virtue of the added proviso which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal investment. 5. In view of the above explanation tendered in the affidavits in support of the impugned proviso, we find no illegality or arbitrariness in clarifying that the exemption contained in the Notification at Exh. "B" would not apply to clearances of yarn from an "integrated unit" referred to as a factory having facilities (including plant and equipment) for producing single yarn. The result of the impugned proviso would be that it would be only the processors carrying on the activity of processing alone who would be entitled to enjoin the exemption accorded by Notification No. 35/95 at Exh. "B" dated 16th March 1995. However, once it is found that the processor is not a processor simplicitor, but has an "integrated unit", havi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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