TMI Blog2000 (8) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... ifold falling within Chapter 54 or 55 of the Central Excise Tariff from the whole of the duty of excise leviable thereon provided that such yarn doubled or multifold was manufactured out of the yarn falling under Chapter 54 or 55 of the Central Excise Tariff on which the appropriate duty of excise has already been paid [page N-122 of 1986 (24) E.L.T.]. They had neither filed any separate classification list for the same claiming exemption from central excise duty nor they declared the same in separate RT-12 returns and gate passes. It was alleged in the various show cause notices that they had mis-declared the special finished yarn as normally constructed doubled/multifolded yarn, doubled out of duty paid yarn which was also classifiable under Chapter 54 or 55 of the Tariff, and had cleared the same at NIL rate of duty, according to the pre-dominance of the fibre content on their own. The Commissioner of Central Excise, Jaipur, who adjudicated the matter found that the special finished yarn in question composed of a core, usually of one or more textile yarns, around which other yarn or yarns were wound spirally. Most frequently the covering threads completely covered the core, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty was discontinued. The yarn in question had a core yarn and he referred to para 23 of the order-in-original. The issue of limitation had been fully discussed by the adjudicating authority in the impugned order-in-original. The yarn not produced on the imported Saurer Allma machine, had been given the benefit treating the same as other than special yarn. 3. We have carefully considered the matter. 4. The appellants were engaged in the manufacture of special finished yarn on the imported Saurer Allma Machine EEX-X Type imported from Germany. It was an electronically controlled machine having on each side three delivery units (rollers) which could be controlled independently of one another as per requirement of the yarn to be manufactured. The delivery of the threads was effected by positive delivery units. The lower rollers were driven slip free by means of rotational change gear and switch gear. On this machine could be produced yarn with special effects (refer para 3 of the statement of facts in the memo of appeal). 5. The special finished yarn was manufactured by the appellants out of duty paid yarn. The base yarns had paid duty under Chapters 54 and 55 of the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for both knit and woven fabrics. For example, a spandex core (as little as 1%) can be completely covered by non-strench staple-fiber which is spun around it. The resultant stretch fabric has all the characteristics of the predominant fiber together with the added advantage of stretch and recovery. Also see Core Yarn. Lycra referred to by the appellants at pages 117-125 of the paper book was a different yarn and the Lycra has been defined in the said dictionary as under - (page 364) : Lycra. - A trademark of E.I. du pont de Nemours and Company for its spandex fiber. Characteristics : remarkable elasticity, high strength, abrasion resistance and flex life greater than conventional elastic threads. Fabrics are not made entirely of Lycra since small percentages of this fiber provide stretch and recovery, or holding power. Uses : foundation garments; support and pantyhose, sports and swimwear; narrow stretch fabrics. The Spandex as referred to in the same Technical Literature filed by the appellants has been defined in the same dictionary at page 574 as under - Spandex. - A generic name for man-made fibers composed largely of segmented polyurethane. Characteristics include go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich viscose filaments yarn is plied in such a manner so as to form knops at regular intervals along the yarn. Since the above samples have knops/spiral/stripes around the core yarns, these satisfy the description of other special yarns. CLR 97 (T.M. No. 71/88) : The sample is dark brown coloured four ply yarn. It consists of a core of black coloured blended two ply spun yarn of polyester and viscose around which a brown coloured filament yarn of polyester has been plied in such a manner so as to form stripes at irregular intervals along the length. It is further twisted with a black coloured blended single ply spun yarn of polyester and Viscose. CLR 98 (T.M. No. 74/88) : The sample is grey coloured three ply yarn. It consists of two ply filament yarn (one ply of which is of viscose and the other is polyester). The viscose filament yarn has been plied over filament yarn of polyester in such a way so as to form knops along the length. This has been further twisted around core of black filament yarn of polyester. 1. CLR-83 (T.M. No. 7/89) : The sample is in the form of pinkish tinted three ply yarn. It consists of a core of pink coloured polyester filament yarn around w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turns. 9. CLR-91 (T.M. No. 73/88) : The sample is in the form of light cream coloured thick three ply yarn. It consists of a core of light cream coloured blended loosely spun yarn of viscose and polyester and a white filament yarn of viscose around which viscose filament yarn is plied in the form of spirals having spaced turns. 10 CLR-92 (T.M. No. 84/88) : The sample is in the form of white two ply yarn. It consists of a core of polyester filament yarn around which polyester filament yarn is plied in such a manner so as to form knops at regular intervals along the yarn. 11. CLR-93 (T.M. No. 83/88) : The sample is in the form of brown and white three ply yarn. It consists of a core of white polyester filament yarn around which a two ply yarn (one ply is brown coloured filament yarn of polyester and other filament yarn of viscose) is plied. Brown coloured filament yarn has been plied with white filament yarn in such a way so that white one forms knops and brown one stripes at irregular intervals along the yarn. 12 CLR-94 (T.M. No. 82/88) : The sample is in the form of pink coloured four ply yarn. It consists of a core of white viscose filament yarn around which pink ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er so as to form spiral and stripes at the regular intervals along the length of the yarn. It contains a core yarn. 4. CLR 394 (T.M. 30/89) : The sample is in the form of white four ply yarn. It consists of a Polyester filament yarn around which two viscose filament yarn are plied in such a manner so as to form knops as stripes at regular intervals along the length of the yarn. It further twisted with polyester filament yarn. It contains a core yarn. 5. CLR 395 (T.M. 33/89) : The sample is in the form of multi-coloured five ply yarn. It consists of white polyester filament yarn and blended spun yarn of polyester and viscose around which black and green coloured spun yarn of polyester and viscose and polyester filament yarn are plied in such a manner so as to form stripes and spiral at the regular intervals along the length of the yarn. It contains a core yarn. 6. CLR 396 (T.M. 32/89) : The sample is in the form of multi-coloured five ply yarn. It consists of two ply black and red coloured spun yarn of viscose and polyester around which white and black coloured filament yarn of viscose and white filament yarn of polyester are plied in such a manner so as to form slubs at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied with another white polyester filament yarn in such a manner so as to form stripes at a regular intervals all along the length of the yarn. It contains a core yarn. 15. CLR 405 (T.M. 45/89) : The sample is in the form of blackish white four ply yarn. It consists of white filament yarn of polyester around which a white and a black coloured viscose filament yarn along with spun yarn of polyester and viscose are plied in such a manner so as to form stripes at a regular interval along the length of the yarn. It contains a core yarn. 16. CLR 406 (T.M. 46/89) : The sample is in the form of multi-coloured three ply yarn. It consists of white filament yarn of polyester around which a red and a black coloured viscose filament yarn are plied in such a manner so as to form stripes at regular intervals along the length of the yarn. It contains a core yarn. 17 CLR 407 (T.M. 47/89) : The sample is in the form of multi-coloured seven ply yarn. It consists of white polyester filament yarn around which double ply blue coloured blended spun yarn of polyester and viscose and two white viscose filament yarn and another two filament yarn of polyester are plied in such a manner so as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of yarn on the said machine, one rayon filament/texturised yarn/other spun yarn and another yarn that may also be filament yarn or other spun yarn, are used. One of the yarn runs at the normal speed and the other yarn is delivered at increased speed if required. Both the yarns are twisted in the process. In the process the yarn delivered at high speed is also wounded spirally on the yarn running at lower speed and at intervals irregularities such as knots, loops, slubs, etc., are formed to give effect in the yarn. The yarn manufactured on this imported machine is sold in the market with the brand names/quality numbers such as Super Taspa , Taxspa, American Randy and knitlon and quality nos. F- 101, 103, 161, 112, 160, 128, D-285, etc. etc. The yarn manufactured on doubling machines is also sold with trade names and the description of its counts and bland. The yarn manufactured on doubling machines is sold between the range of Rs. 100/- Kg. to Rs. 150/- Kg. depending on raw material use and the yarn manufactured on the imported ring twisting machine is sold between the range of Rs. 200/- to 250/- Kg. because the other raw material is more costly. Such yarn cannot be manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le manufacturers, there has been some attempt to limit the application of these terms. It is sought to use the term blend for fiber admixtures, the word mixture for a fabric having a warp of one type of yarn and a filling of another and combination for fabrics where dissimilar yarns are combined in either warp or filling or both. Also see Blend. Under the HSN Explanatory Notes for the purposes of Chapter 54, spun or continuous yarn held together were to be considered as twisted yarn. According to the same dictionary Twisting has been defined as under - (page 637) : Twisting. - 1. Process of combining two or more parallel single or ply yarns by twisting together to produce a ply yarn or cord. Ply yarns result from twisted single yarns and cords and cables from twisted ply yarns. Twisting is also employed to obtain greater strength and smoothness, increased uniformity, or novelty effects in yarn. 2. Twisting is also done to make crepe yarns of single or ply yarns but this operation generally is called creping or throwing. The twisted yarn for the purposes of classification under Chapter 54 should not be confused with the yarn where different yarns were formed with a core yarn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54.03 held together by twist, are not to be regarded as multiple (folded) yarn. (iii) Cabled yarns means yarns formed from two or more yarns, at least one of which is multiple (folded), twist together in one or more folding operations. The ply ( fold ) of a cabled yarn means each of the single or multiple (folded) yarns with which it is formed. The definition of multiple fold yarn and cabled yarn had already been extracted above. While dealing with the yarn classifiable under Heading No. 56.06 it is explained that the products classifiable therein are composed of a core usually of one or more textile yarns around which other yarn or yarns are wound spirally. The core in the special yarns does not itself undergo twisting with the cover threads. On the basis of the evidence discussed, the adjudicating authority had come to the following finding - By virtue of one yarn having been plied around the core yarn, the possibility of twisting the core with the cover yarn have been completely ruled out because of in case of twisting the two yarns are plied over each other whereas as per the Chief Chemist s report only one or two yarns of different varities have been plied around ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the representative character of the samples had not been disputed. There is no plea that their process of manufacture had undergone a change. The duty demand had been restricted only to the special yarn manufactured on the imported Saurer Allma Machine of German make. The appellants themselves had submitted that the demand be restricted only to the yarn manufactured on imported Saurer Allma Machine. This submission of the appellants had been agreed to by the adjudicating authority. In this connection para 8 from the Tribunal s decision in the case of M/s. Soma Textiles v. C.C.E., Ahmedabad, 1998 (98) E.L.T. 154 (Tribunal) is extracted below - 8. The appellants have also contended that the test results had been made applicable to the earlier clearance also. The samples are drawn and are tested to classify the excisable goods as and when such test results are relevant for proper classification. They are made applicable to the clearances which are considered representative of such samples. In case the contention of the appellants is admitted, then the samples had to be drawn continuously each day may be each hour. This is not practical and this is not feasible. The appellants hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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