2002 (6) TMI 57

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..... plication under Section 35H(1) of the Central Excise Act, 1944. The facts leading to this application are that the yarn manufactured by the assessee passes through two stages. In the first instance single yarn is manufactured and by using that single yarn to further process it is converted into double yarn. The respondent-assessee has paid duty on double yarn. The case of the revenue is that the d .....

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..... s already paid duty at doubling stage on the double yarn at a higher valuation, therefore, no duty is now payable on the single yarn. 4.On appeal, the Commissioner (Appeals) held that taking the waste percentage as .35% the demand would be worked out afresh on the quantity of single yarn used for doubling during the relevant period. He also noticed that the appellant-assessee has claimed the qua .....

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..... and not on hypothetical quantity by deriving the same on a hypothetical formula. With this conclusion, the Tribunal remanded the case back to the Assessing Authority to decide the case afresh as it was necessary to establish the duty correctly payable on the single yarn actually produced by the appellant. In doing so, the Tribunal also accepted the plea of the assessee that since no tax was payab .....

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..... product has been held excisable and dutiable? (II) The duty on double yarn was, in fact, duty paid on the single yarn with value addition as laid down by the Hon'ble Supreme Court in the case of Sidhartha Tubes Ltd. v. CCE [2000 (115) E.L.T. 32 (S.C.)]. Thus, single yarn contained in the waste arisen in the process of conversion from single yarn to double yarn had escaped duty. The condition imp .....

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..... oubtedly is liable to be adjusted against the final liability. In granting this adjustment, no question of giving the reverse adjustment of the duty is sought to be contended by the revenue. It is not a question of granting Modvat credit at earlier or later stage but a question of determination of duty payable by adjustment of payment already made by redetermination at correct stage. 8.According .....

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