2015 (10) TMI 351 - SCH - Central Excise

Duty demand - Base yarn - Captive consumption - Held that - On waste no duty is payable and this aspect has been dealt with by the Tribunal in Modipon Ltd. vs. C.C.K.Meerut 1999 (8) TMI 193 - CEGAT NEW DELHI . Insofar as the present case is concerned the Tribunal has observed in the impugned order that the authorities are treating loss and waste as the same i.e. there was waste of 6.5% of the base yarn during texturizing. In view thereof we are of the opinion that the case of the respondent-assessee was squarely covered by the decision in the case of Modipon Ltd.(supra) as mentioned above and the Tribunal rightly allowed the appeal of the respondent-assessee setting aside the order passed by the authorities below. - Decided against Revenue.

Summary

The Supreme Court dismissed the appeals filed by the Revenue regarding duty demand on base yarn used for texturising. The Court held that duty is not payable on waste, and the case was covered by a previous decision. The Tribunal's decision in favor of the respondent-assessee was upheld.