TMI Blog1988 (8) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... er Rule 173B of the Central Excise Rules stating that they intended to clear PPRF yarn, on which duty had already been paid. 2. According to the appellant, the PPRF yarn consists of two varieties of yarn on which duty has already been paid, namely, two plies of Polyester Spun Yarn - PP and one ply of Rayon Filament Yarn - RF, which are doubled together and the resultant yarn is referred to as PPRF Yarn. The aforesaid classification list filed by the appellant was rejected and it was directed to file a fresh classification list showing PPRF yarn under Tariff Item 68 of the Central Excise Tariff. The case of the appellant is that since it was not permitted to clear PPRF Yarn without further payment of duty under Tariff Item 68 of the said R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... February, 1980, the appeal filed before the Revisional Authority against the order of the Appellate Collector was transferred to the CEGAT under Section 35P of the Act. 5. By the judgment in appeal, the Tribunal held that the goods in question, namely, PPRF Yarn was taxable under Tariff Item 68 and there was no question of any refund being due to the appellant. 6. Hence, the short question involved in this appeal, is : whether the goods in question, namely, a special type of yarn marked as a finished product known as 'PPRF Yarn', should be treated as such and taxed on that basis. Excise duty is a duty on the manufacture of goods and not on sale. Manufacture is complete as soon as by the application of one or more process, the raw mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1982 E.L.T. 145], where the facts were slightly different but the learned Single Judge of the High Court held that merely by inter-twining strings of cotton yarn and nylon yarn, no new product comes into being. Whether by a certain process a new product comes into being or not, is a question of fact. There is no particular definition of 'yarn' in the Act or the Rules or the Notifications. According to the Oxford Dictionary 'yarn' means any spun thread specially of kinds prepared by weaving, knitting or rope making. According to the Webster's New World Dictionary, it is defined as any fibre, as wool, silk, flax, cotton, nylon, etc. spun into strands for weaving, knitting or making thread. 8. This Court in Commissioner of Sales Tax, U.P. v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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