2008 (8) TMI 121

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....law as under:- "(1) Whether in the facts and circumstances of the case, the article sewing thread is a product which comes into existence by way of manufacturing from doubled and multi fold yarn and therefore, is not governed by exemption Notification No.84/95-C.E. dated 1995? (2) Whether the amendment introduced in Chapter 55, by putting a Chapter Note w.e.f. 26.5.95 had altered the position in respect of sewing thread than it was existing before such chapter note was introduced?" 2. The learned Commissioner, by said order dated 26.8.2002, decided the controversy, relating to availability of exemption, from excise duty, for the two spell of times; being 1.3.1994 to 17.5.1995, and for 18.5.1995 to 7.11.1995, and in Para 22, held that the....

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....ded that conversion of any form of yarn into another form of yarn amounts to manufacture, and that, during the period in question, there was no such chapter note, and therefore, the activity of the assessee, was not found to be amounting to manufacture. For this proposition, learned Tribunal relied upon other order of the Tribunal dated 27.12.2002, passed in Appeal of CCE v.  Anand Threads. Admittedly, this order, dated 29.7.2003, has not been appealed by the revenue any further, and it has become final. 4. Thus, the controversy, in the present appeal, relates only to the subsequent period from 18.5.1995 to 7.11.1995. The Tribunal, in this regard found, that the issue is settled by the Tribunal, in the case of Ayyappa v. CCE (supra), ....

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....exemption would be available. So far as column No.5 is concerned, it is not in dispute, that the manufacture is out of the yarn, falling under Chapter 55, which is one of the Chapters, which is included in column No.5, therefore, we need not detain ourselves on column No.5. Then, we come to column No.3, and a look at column No.3 of notification No.35 of 1995 would show, that in the description of goods, at Item No.1 & 2, which are relevant: sewing thread, or doubled, or multifold, including cabled yarn, was specifically excluded, by being put in the brackets as "other than". Thus, per force, notification No.35 of 1995, the product of the assessee, was clearly excluded from the exemption notification, but then, this notification No.35 has be....