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TMI Blog1989 (7) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... rom their customers for the purpose of doubling/twisting/dipping and after carrying out these processes, yarn was returned to their customers and according to the adjudicating authority (the Assistant Collector), after these processes are carried out, a new product commercially known in the market as 'Dipped Nylon Tyre Yarn' emerges. The appellant contends that even after the processes, yarn remains yarn for all purposes. The Assistant Collector has held in his findings that a different product, known in the market by distinct constitution, use and marketability emerges and is, therefore, correctly classifiable under T.I.68. 2. In Appeal No. E1807/84-D, the respondents received yarn from their customers and they carried out triple-twisting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ult of such process of doubling, a new yarn, having combination of filament and spun yarn, emerges which is classifiable under T.I.68. 7. Aggrieved by the order of the jurisdictional Assistant Collector, all these respondents went in appeal and the Collector of Central Excise (Appeals), Bombay, by a common Order-in-Appeal Nos. M-817-856/BI-249-271/BII-132-145/TH-51-53/84 (whereby he disposed of 40 appeals including appeals preferred by these respondents), allowed the appeals and held that the respondents are doing job work only and they will be liable to pay excise duty in respect of job work carried out by them only. 8. Aggrieved by the said order, the Revenue has preferred these appeals. 9. We heard L.A. Sh. E.P. Bharucha with L.A. Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove. So, according to Shri Chakravorty, these respondents are not entitled to avail of the benefits provided under Notification No. 119/75 and so all these appeals must be allowed. He has submitted that the issue whether a new product emerges, is decided in favour of Revenue in Aditya Mills Ltd., Rajasthan v. C.C.E., Jaipur -1983 (14 ) E.L.T. 1853 (CEGAT). In this case, it is held as under: "The PPRF yarn, obtained as a result of doubling and twisting of two distinct types of yarns falling under two distinct tariff items, namely one rayon filament yarn and the other polyester spun yarn, was a new variety of yarn known to the market, as "fancy yarn". Since it did not fall under any of the specific categories of Tariff Items 18 to 18F, it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td., Bombay v. C. C.E, Bombay -1985 (21) E.L.T. 252 (CEGAT), two judgments of Madura Coats Ltd. v. C.C.E. -1980 (6) 582 (Cal.) and another M/s. Madura Coats Ltd. - 1982 (10) E.L.T. 370 have been referred to and have been relied upon. In both these cases, the facts were identical and it has been held therein that while carrying out the process of twisting the material thereby underwent the change in physical form but was still identifiable with the articles supplied by the customers and so the assessees were entitled to avail of the benefit under Notification in question. But in Madura Coats Ltd. (supra) - 1982 (10) E.L.T. 370, there was, further observation, which is as under: "If during the manufacturing process, the materials supplied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as nylon or rayon tyre cord warp sheets, they do not cease to be nylon or rayon yarns. In other words, the nylon or rayon yarns are not transformed into a new substance having a distinctive character." 17. Now, in these appeals, the respondents are doing the process of doubling/twisting of different types of yarn (in Appeal No. E1807/84-D, the respondents are twisting triple yarns of different varieties and in Appeal No. E/1804/84-D, the respondents are doing process of dipping also). Now, in case of Aditya Mills Ltd. (supra), the Hon'ble Supreme Court has specifically held that such twisting results into emergence of different products. So submission of Sh. Bharucha, L.A. that judgment of Hon'ble Supreme Court is binding to this Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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