1997 (1) TMI 348

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....ndents. [Order]. - Both sides point out that question involved in this appeal is `applicability' of Rule 49A and dutiability to `unutilised yarn' converted into straight reel hanks. 1.2 Briefly stated, facts of the case are as follows : (a) The appellants herein are a composite textile mill. They manufacture yarn which is taken on spindles in spinning section. Thereafter, in the pr....

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.... fabric but on payment of interest for such deferment. Procedure under Rule 49A is allowed with the permission of the Central Excise authorities. 1.3 Dispute is on the dutiability of yarn on unused bobbins (cones) and remnants of yarn on bobbins from which straight reel hanks of yarn were produced and cleared under exemption Notification 47/90. 1.4 Lower authorities have held that the ....

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....nsidered as manufacture. This is permitted to be done in purely `spinning units'. Duty is collected on yarn in the form in which it is cleared from the spinning unit. There is no reason for discriminating against the composite units in this respect. 3.1 Ld. JDR, Shri S.M. Ghosh reiterates the foregoing findings of the lower authorities. 4.1 I have carefully considered the pleas advance....