Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 975 - AT - Central ExciseDenial of MODVAT Credit - benefit of Notification No. 5/99-CE dated 28.02.1999 vide Sl.No. 137, which exempts yarn subjected to process of winding with or without the aid of power and on which duty has been paid and the process of doubling the yarn is undertaken in a continuous process - Held that:- Appellants are bringing duty paid single yarn and undertaking the process of winding and twisting and doubling the yarn, and counts wound in a cone in one integrated process and claimed the benefit of Notification No. 5/99 dated 28.02.1999 vide Sl.No. 137. The decision relied upon by the Ld. Counsel in the case of Sr. Raj Rajeshwara Co.op. Spinning Mills Ltd. (2004 (5) TMI 333 - CESTAT, BANGALORE), wherein it has been held that single ply yarn continue to remain yarn and no new product come to existence and merely because of the process of winding on the cops, the goods do not become different. Alternatively, the appellants claim the benefit of Sl. No. 130 of the Notification No. 5/99 which exempts multiple or cabled yarn manufactured in a factory which does not have the facilities for producing single yarn. We find that the Apex Court in the case of Swastic Rayon Processors (2006 (11) TMI 31 - SUPREME COURT OF INDIA), has held that twisting and doubling of yarn does not amount to manufacture and the yarn continues to be yarn. As the appellant has received only duty paid single yarn and carried out the process of doubling, twisting, winding all in one process on TFO machine, the adjudicating authority has not brought out any evidence and merely denied the benefit of Notification No. 5/99 on the grounds that there is no separate winding machine. Since all he above three activities are integrated in one machine as above, we do not find any justification in the order of the lower authorities in denying the exemption under Notification No. 5/99 dated 28.02.1999. - appellant is eligible for the exemption under the Notification No. 5/99. Since the appellant is eligible for the exemption under the above notification, the question of availing of MODVAT Credit on the inputs does not arise - Decided in favour of assessee.
|