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TMI Blog2019 (2) TMI 1237X X X X Extracts X X X X X X X X Extracts X X X X ..... nt were claiming exemption on the said product claiming SSI Notification No. 8/2003-CE dated 01.03.2003. During the process of manufacturing Narrow Woven Fabrics, the appellants were manufacturing Multifilament Yarn of 800 doniers and the same was consumed captively for manufacture of Narrow Woven Fabrics. The multifilament yarn is not covered by the SSI exemption notification and consequently duty on the said yarn produced and consumed within the factory was confirmed by the lower authorities. Aggrieved by the same, the appellants are in appeal before the Tribunal. 3. Ld. Counsel for the appellant primarily argued that the intermediate product namely multifilament yarn is not marketable commodity and therefore, Central Excise duty cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o further process. This filament is not twisted in above process and later on reaching to final product. The name of the said machine is draw twister, but it is in commercial parlance, though it does not twist the filament. In fact for twisting so as to increase the shelf life the another machine i.e. T. F.O. is available in the market and it works to twist the filaments. The same process requires coning oil for operation. This machine is not available in this premise. The filaments generated through this process raw & Twist machine) are not viable to storage for long time for the reason of its lesser shelf life. It is to be taken in us as soon as possible. This flat filament produced by the help of D. T. is not having shelf life and so, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that oil and water are applied when the filaments pass through oil rollers. They are, then wound on bobbins. At this stage yarn is known as undrawn yarn or filament. They can be stretched to three to four times of the original length. This is known as take-up stage. It may also be mentioned that, from the spinnerettes the molten state filaments can be taken directly for partial drawing to obtain partially oriented yarn (which can be further stretched to 1.6 times approximately). 4. The undrawn yarn at the take-up stage is stored under certain temperature and humidity condition before they are taken for drawing or draw-texturising. Otherwise the undrawn yarn would deteriorate and cannot be used for manufacrture of textile monofilaments/yarn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e still in the semi-finished condition and are not marketable." He argued that without drawing of yarn, it is not suitable for use and therefore, cannot be used for weaving. 6. Ld. AR relied on the impugned order. 7. We have carefully gone through the rival submissions. We find that appellants are first drawing the yarn from plastic granules. The appellants claimed that they have drawing yarn in the DT machine. The said yarn is then wound on bobbins and later used for manufacturing Narrow Woven Fabrics. The argument of the appellant is that after drawing the yarn, the same is not twisted. It has been argued that till it is not twisted, the yarn is not stable product and hence it is not marketable. In the appeal memoranda, on page 3, it h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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