TMI Blog2010 (8) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... oduced enough evidence which was not the case in both the decisions cited by the appellants – No case on merits - E/1617-1618/2006 - A/1222-1223/2010-WZB/AHD - Dated:- 19-8-2010 - Ms. Archana Wadhwa, Member (J) and Shri B.S.V. Murthy, Member (T) REPRESENTED BY : Shri Anand Nainawati, Advocate, for the Appellant. Shri J.S. Negi, SDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. - Appellant is engaged in the manufacture of Polypropylene Multi Filament Yarn (PPMF), texturised PPMF yarn, twisted PPMF yarn, PPMF fully drawn yarn etc. The dispute in this case is whether appellants are liable to pay central excise duty on the intermediate goods namely partially oriented yarn of PPMF yarn of 385 deniers us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and are unstable and had a shelf life of only a few hours were not verified. 3. The learned DR submitted that in their modvat declaration dated 23-7-96 appellants had declared PPMF (POY) as a final product at Sl. No. 1 and Sl. No. 2 was textured yarn of PPMF and polyester. Further they had also filed the declaration under Rule 173B and had claimed exemption for PPMF (POY) under Notification No. 67/95-C.E., dated 16-3-95. Since they had claimed exemption for the final product under Notification No. 5/99 dated 28-2-99, they could not have claimed exemption in respect of PPMF (POY) of 385 deniers. Further he also submitted that appellants had sent the goods for job work for some time which would show that goods were capable of being so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application, POY yarn is wound on spool (Bobbins) on a high speed winder. When pre-decided (desired) size of POY is obtained, bobbins are doffed (4 at every position) and kept on trolley. From there, material is sent for denier, strength elongation and other testing to Quality Control. Q/C department grades the material as per Q.C. testing reports. Graded material is packed in boxes and is ready to be sent for further process". 5. From the above it can be seen that the process starts with virgin chips and ends with PTY of the prescribed denier. The fact that checks for quality control, denier verification, elongation, strength etc. are carried out and the material is packed in boxes and also the fact that earlier the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made no efforts to ascertain whether intermediate products are available in the market and no chemical analysis was conducted. Unlike these two cases, in the present case, the process manufactured would clearly show that the product that emerges after the process has a distinct character, name and use. Further the fact that it was being sent to job worker would show that the product is capable of being marketed. Additional support comes from statutory declarations/return. Once this much evidence has been produced by the department, the burden shifts to the appellants to show that the process of manufacture does not amount to manufacture by showing that the product does not fulfill one of the three requirements. The appellants have simply ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
