Home Case Index All Cases Central Excise Central Excise + SC Central Excise - 1989 (9) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1989 (9) TMI 100 - SC - Central ExciseWhether the duty on yarn under the scheme is payable on the production of yarn or on the date of clearance of the fabrics? Held that:- view taken by the Tribunal has to be upheld. `Yarn' is an excisable commodity and it is common ground before us that, normally and but for the special procedure and notification, duty thereon is leviable at the point of production and clearance for captive consumption. On that view, the duty attaches itself at the point of production and clearance of the yarn. The notification does not alter this position. It does not shift the incidence of duty from yarn to the woven fabric. It still talks only of the liability of the yarn to duty and proceeds to provide only for its postponed collection. If we are right on this, the duty on such yarn - produced between 17-3-1972 and 24-7-1972 - has to be determined in accordance with the rates specified in the notification, though such rates may have to be calculated in terms of the area of the fabric cleared on or after 24-7-1972. The duty cannot be determined at the rates specified for yarn under Item 18-E as applicable on the dates of clearance of the fabric manufactured by using the yarn. To hold otherwise would really mean holding that the incidence of duty on the yarn under the notification arises only on the date of clearance of the manufactured fabric. This, in our view, is not the effect of the notification No. 62/72, on 17-3-1972. Appeal dismissed.
|