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2019 (2) TMI 1237 - AT - Central ExciseDemand of Central Excise duty - yarn manufactured within the factory and consumed for manufacture of Narrow Woven Fabrics - Captive consumption - benefit of SSI Notification No. 8/2003-CE dated 01.03.2003 - Held that:- There is contradiction in the claim that the appellant. They have stated that they did not have twisting machine. In the statement of Shri Jitendra Kumar P. Mansuriya, Partner of the appellant, it has been stated that they did not have twisting machine but the appeal memoranda suggests that they have the machine. The facts therefore needs verification. It is obvious that Narrow Woven Fabrics cannot be manufactured using unstable yarn which is not twisted. The appellant in their appeal memoranda also have themselves stated that unstable yarn cannot be used for multifilament and Narrow Woven Fabrics is produced by the process of weaving - The law is very clear, if the yarn produced at the intermediate stage is twisted /texturised before use for weaving the same is liable to Central Excise duty. However, if twisted/terturised yarn does not come into existence before weaving, it may not be taxable - the facts needs verification. Appeal allowed by way of remand.
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