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2017 (11) TMI 276 - AT - Central ExciseWaste - levy of excise duty - department case is that the excise duty on the removal of such waste should be paid considering such waste yarn as finished yarn and the value of finished yarn should be adopted for payment of duty - Held that: - the appellants have drawn the samples of synthetics filament yarn from the production before packing and before entering into RG-1 register. The record of the said drawal of samples was maintained by the appellants. After testing of the samples, it gets converted into waste which was cleared by the appellant on payment of duty. As per this fact, the goods which were cleared from the factory, is the yarn waste and not the finished yarn. Therefore, the duty considering the said waste as finished yarn is absolutely incorrect. The removal of waste yarn is in the same manner as goods are removed for home consumption - there is no dispute that the appellants have discharged the excise duty on the clearances of waste yarn arising out of testing of yarn. Appeal allowed - decided in favor of appellant.
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