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2018 (1) TMI 1535 - AT - Central ExciseMarketability/excisability - intermediate goods - Poly Propylene Multi Filament Yarn (PPMFY) - the case of the Department is that since the final product NWF was exempted vide N/N. 30/2004 dated 09.07.2004, the exemption provided under N/N. 67/95 dated 16.03.1995 (an intermediate product) is not admissible, and the appellant is required to pay duty - HELD THAT:- The appellants’ unit is a composite unit and doing continuous manufacturing process wherein spinning of semi-finished PPMFY is being done followed by subsequent process like stretching, winding, warping and braiding is done on a needle loom - PPMFY in the stage it is generated is not marketable, being integrated and inter-winded in a continuous process, the yarn threads are still open with oil contact and are not even open at the stage of being coned or paper coned or paper tubed’ and still the said product are bound in loose form in heavy iron bobbins which still has to undergo subsequent operations and the product is in semi-finished form. The said PPMFY cannot be marketed in any manner, therefore, fails the test of marketability. Our view is supported by the decision of Hon’ble Supreme Court of India in the case of Bata India Ltd. vs CCE, BATA INDIA LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, NEW DELHI [2010 (4) TMI 58 - SUPREME COURT] and also of this Hon’ble Tribunal in the case of M/S RISHI BAKERS PVT. LTD., SHRI PRAKASH CHAND TALREJA, DIRECTOR, M/S RAMAKRISHNA BAKERS PVT. LTD., SHRI RAJIV TALREJA, DIRECTOR, M/S SWATI BISCUIT MANUFACTURING CO., SHRI OM PRAKASH SHYAMDASANI, PARTNER VERSUS CCE & ST, KANPUR [2015 (4) TMI 893 - CESTAT NEW DELHI]. Hence, the said product is not liable for Central Excise duty. Appeal allowed - decided in favor of appellant.
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