2004 (2) TMI 117

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..... ved in this Appeal, preferred by Revenue is whether benefit of Notification No. 1/95- C.E. is to be denied in respect of inputs which have been used in the manufacture of cotton waste arising during the course of manufacture of cotton yarn. Shri Virag Gupta, Departmental Representative submitted that M/s. Aarti International Ltd., a 100% Export Oriented Undertaking manufacture cotton yarn and cott .....

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..... subjected to a duty of excise; that as cotton waste is not subjected to duty of excise since no duty is chargeable as per Central Excise Tariff, it is not an excisable article; that, therefore, cotton waste falls within the ambit of non-excisable goods and the duty is payable. 2. Opposing the Appeal Shri R. Santhanam, learned Advocate, submitted that cotton waste is specifically mentioned .....

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..... isable goods. As per Section 2(d) of the Central Excise Act excisable goods means goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff as being subjected to duty of excise and includes salt. Cotton waste is specifically covered by Heading 52.02 and presently the rate of duty mentioned in the First Schedule to the Central Excise Tariff Act is nil. It is, theref .....

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