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2016 (1) TMI 1058 - AT - Central ExciseDutiability and classification of Polyester Sewing Thread - Held that:- The Polyester Sewing Thread is distinctly known in the market and the yarn purchased by the appellant apparently cannot be marketed or used as the Sewing Thread. The Original Authority held that “the only processes adopted by the assessee are dyeing and rewinding of the yarn on cones. Obviously this is not manufactured”. How appellants came to the conclusion that the process does not amount to manufacture is not clear. The learned Commissioner (Appeals) while setting aside the order-in-original has categorically observed that a commercially different commodity that is Sewing Thread came into existence by applying the process of dyeing and rewinding of multifold or cabled yarn. We find that there is no material now before us to arrive at a different conclusion. We also find that the issue of dutiability of Sewing Thread was examined and clarified by the Board vide Circular No. 168/2/96-CX., dated 23-1-1996. The Board clarified that the argument that there was a definition of Sewing Thread for all the headings except Heading No. 55.04 for the tariff is not really relevant so far as the dutiability of Sewing Thread is concerned. The dutiability does not arise by virtue of the fact the definition of Sewing Thread was provided for in certain headings, but by virtue of the fact that the process of making Sewing Thread out of single thread/yarn is basically a process of manufacture under Section 2(f). In view of the above discussion, we find that there is no ground to interfere with the findings of the learned Commissioner (Appeals) and accordingly we dismiss the appeal. - Decided against the assessee.
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