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2013 (2) TMI 667 - AT - Central ExciseBenefit of Notification No. 30/2004-C.E., dated 9-7-2004 - job worker converts the yarn in cake form into cone form and clears the same to the appellant’s depot - Manufacturing activity or not - held that:- As per the Chapter Note 3, various processes undertaken on the yarn specified therein or any other like process would amount to manufacture. The various processes specified converts the yarn from one form to another but nevertheless the product remains yarn only. All these processes are undertaken to make the yarn suitable for weaving of fabrics. The VFY in cake form is not suitable for weaving. Therefore, it has to be converted into cone form before it can be used for weaving. The process of conversion of yarn from cake form to cone form is similar to the processes specified in Note 3 to Chapter 54 and therefore, the said activity would amount to ‘manufacture’ in our view. It would be evident that it is M/s. Shristi Textiles who are the manufacturers of VFY in cone form and not the appellant who has supplied VFY in cake form and all other materials required for the manufacture including capital goods. The expression “manufacture of filament yarn” was explained as manufacture of filament of organic polymers produced by polymerization of organic monomers, such as, polyamides, polyesters, polyurethenes, or polyvinyl derivatives or organics. Whether the manufacturer had the facility or not in his factory is a question of fact which needs to be examined by the adjudicating authority. From the perusal of the impugned order, it is seen that the adjudicating authority has not considered any of the issues discussed in proper perspective - Matter remanded back - Decided in favour of assessee.
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