TMI Blog2010 (1) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... o be seen in the context of the above process. If an operation/process renders a commodity or article fit for use for which it is otherwise not fit, the operation/process fall6 s within the meaning of the word "manufacture - POY is a semi-finished product. It is a raw material/input. That raw material or input gets converted into a texturised yarn by reason of the thermo mechanical process. POY is unfit for manufacture of fabric – held as amount to manufacture - 786 to 792 of 2010OF 2010 - - - Dated:- 20-1-2010 - S.H. Kapadia and H.L. Dattu, JJ. Arijit Prasad , Rahul Kaushik and B.V. Balaram Das, for the appellant. V. Lakshmi Kumaran , Alok Yadav , Ankur and M.P. Davanath, for the respondent. ORDER Leave granted. 2. Hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined the process in the light of the opinion given by the expert, which has not been controverted, we find that POY is a semi-finished yarn not capable of being put in warp or weft, it can only be used for making a texturized yarn, which, in turn, can be used in the manufacture of fabric. In other words, POY cannot be used directly to manufacture fabric. According to the expert, crimps, bulkiness etc. are introduced by a process, called as thermo mechanical process, into POY which converts POY into a texturized yarn. If one examines this thermo mechanical process in detail, it becomes clear that texturising and twisting of yarn constitutes 'manufacture' in the context of conversion of POY into texturized yarn. At this stage, we may also rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thermo mechanical process also bring about a structural change in the yarn itself, which is one of the important tests to be seen while judging whether the process is manufacture or not. The structure, the character, the use and the name of the product are indicia to be taken into account while deciding the question whether the process is a manufacture or not. 9. Before concluding, we may point out that the learned counsel appearing for the Department cited before us a judgment of a Division Bench of this Court in the case of Commissioner of Central Excise, Mumbai-V vs. Swastik Rayon Processors, reported in 2007 (209) E.L.T. 163 (S.C.), in which it has been held that twisting of cellulosic filament yarn with a blended yarn comprising of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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