TMI BlogCentral Excise - MMF - Assessment of POY and Textured Yara - Review of Ministry's Circular No. YARN/2/80-(F. No. 50/1/80-CX.2), dated 24-9-1980X X X X Extracts X X X X X X X X Extracts X X X X ..... d 24-9-1980 issued from F. No. 50/1/80-CX.2 in which the question of classification of Partially Oriented Yarn (POY) for purposes of classification and collection of countervailing duty was discussed and the Law Ministry's advice on the subject was accepted and communicated to the field formations. According to the Ministry of Law, POY which is imported in raw material or a base yarn subject to drawing and texturising done simultaneously on draw texturising machines. POY of 86 denierage is texturised into 50 denier and one other quality of POY which when imported is of 150 denier is texturised to 75 denier. This is the final stage when the yarn becomes a marketable commodity known to the textile industry. Therefore, it will be just and lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lia, observed that "CVD must be levied on the goods as they are when they are imported. The goods here as they were when they were imported by the petitioners was POY of 115 deniers. It was liable to that rate of CVD as was provided for in respect of POY of 115 deniers. The rate was, as the petitioners, rightly contended Rs. 61.25 per kg. The court further observed that if excise duty upon texturising is leviable, it must be levied by the Excise Authorities. 4. The said issue was again referred to the Law Ministry for their opinion in F. No. 357/21/83-TRU. The Law Ministry has viewed as follows : "The point for consideration is whether it is possible to charge excise duty on partially oriented yarn (POY) on the basis of its ultimate den ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er filament yarn is that, while in the case of fully oriented yarn the same can directly go in for manufacture of woven and knitted fabrics and it would only be an option to texturise the said yarn. In the case of partially oriented filament yarn, the same is necessarily to be further drawn and simultaneously texturised before it can go in for the manufacture of woven and/or knitted fabrics. This way, partially oriented yarn is semi-finished till it reaches the category of raw material after drawing and texturising." This decision of the Tribunal has been accepted by the Board. 6. In the light of the above decisions and revised Law Ministry's opinion and in view of the fact that partially oriented yarn is a commodity which is being bought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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