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2023 (5) TMI 239 - CESTAT KOLKATALevy of Excise Duty - process amounting to manufacture or not - folded yarn/doubled yarn/ply yarn was made out of single yarn stage - intermediate stage of production - ex-parte order - opportunity of personal hearing not provided - It is the case of the Appellant that cotton yarn in straight reel hank falling under heading 52.03 of the Schedule to the Central Excise Tariff Act, 1985 was exempted from payment of Central Excise duty - HELD THAT:- The Department had demanded duty on the cotton yarn in view of the Chapter Note I to Chapter 52 of CETA, 1985 on the ground that products covered under Heading No. 52.03, sizing, beaming, warping, winding or reeling or any one or more of these processes for conversion of any form of the said products into another form of such product amounted to manufacture and on the ground that since the stage in which it was actually removed by the said assessee i.e. straight reel hank cotton yarn exempted from duty of excise, therefore the duty was not leviable since final product is exempted vide Notification No. 187/83 dated 09.07.1983. Undisputedly Cotton Yarn in straight reel hank falling under heading NO. 52.03 of the Schedule to the Central Excise Tariff Act, 1985 was exempted from payment of Central Excise duty. There is also no dispute in the present case that the Appellants had cleared the cotton yarn in straight reel hank and prima facie it is found that their case is covered by the judgment of this Tribunal in the case of ARATI COTTON MILLS VERSUS COMMISSIONER OF C. EX., CALCUTTA-II [2000 (9) TMI 536 - CEGAT, KOLKATA], wherein the Tribunal held The identical definition which was already in existence under Section 2(f) was considered by the Bench and it was held that conversion of one stage of yarn into another will not amount to manufacture. It is also seen that hank yarn is obtained as a result of continuous process of manufacture in which the winding of bobbin is only an intermediary process. As such we do not find any reasons to take a different view than the one taken by the Tribunal In the earlier decisions - The facts of the present case are squarely covered by the aforesaid decision of the Tribunal. The impugned order cannot be sustained and is accordingly set aside - Appeal allowed.
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