2004 (5) TMI 333

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..... by the assessee. He has held that the single ply yarn obtained on cops/bobbins from the spinning machine when poured (wound) into cones does not bring about any material/substantive change either in the name, character and usage in the substance because the cones received single ply yarn only and yarn remained in single ply yarn form only at all times on cones till it is marketed. He has held that to make the single ply yarn at cops/bobbin stage marketable, it is wound to cones in single ply yarn which does not result in the emergence of a new product and, therefore, cannot either be called as conversion or captive consumption, as the assessee have not produced any new product therefrom. He has noted that the Assistant Commissioner has alr .....

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..... n does not deal of new goods having come into existence. Hence, we are of the view that this judgment is distinguishable. 5. Learned SDR again relied on the judgment of Birla Transasia Carpet Ltd. v. CCE, Meerut - 2001 (129) E.L.T. 355 (Tri.-Del.) which also deals on the interpretation of Notification No. 26/94-C.E.. It was held to be not applicable to woollen yarn in plain (straight) reel hanks after manufacture if converted into cones and removed in cone form for the manufacture of carpets in the factory, in terms of the wordings appearing in the Notification which grants benefit only to yarn of wool in plain (straight) reel hanks whether single/multifold. Since the yarn was not removed in hanks therefore, the benefit was not granted. .....

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..... ful consideration, we find that the Commissioner (Appeals) has carefully considered all the aspects of the matter and has noted that the Department had not produced any evidence to show that the goods are marketed at spindle stage. He has noted that the goods are marketed only on cop/bobbin stage. He has also noted that the singly ply yarn at cop/bobbin stage alone is marketable and the single ply yarn continues to remain a singly ply yarn. We note that this view has already been expressed by the Tribunal in the case of Modern Mills Ltd. (supra). It is very clear that the goods have remained the same and merely because of the process of winding on the cops, the goods do not become different. There is no change in the name, usage or characte .....

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