9911796707
TMI Blog2002 (6) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel for the respondent on caveat. 2.This is an application under Section 35H(1) of the Central Excise Act, 1944. The facts leading to this application are that the yarn manufactured by the assessee passes through two stages. In the first instance single yarn is manufactured and by using that single yarn to further process it is converted into double yarn. The respondent-assessee has p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot accept the plea of the assessee that since the assessee has already paid duty at doubling stage on the double yarn at a higher valuation, therefore, no duty is now payable on the single yarn. 4.On appeal, the Commissioner (Appeals) held that taking the waste percentage as .35% the demand would be worked out afresh on the quantity of single yarn used for doubling during the relevant period. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be based on the actual quantity of production and clearance and not on hypothetical quantity by deriving the same on a hypothetical formula. With this conclusion, the Tribunal remanded the case back to the Assessing Authority to decide the case afresh as it was necessary to establish the duty correctly payable on the single yarn actually produced by the appellant. In doing so, the Tribunal also ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al products is not leviable to duty and the intermediate product has been held excisable and dutiable? (II) The duty on double yarn was, in fact, duty paid on the single yarn with value addition as laid down by the Hon'ble Supreme Court in the case of Sidhartha Tubes Ltd. v. CCE [2000 (115) E.L.T. 32 (S.C.)]. Thus, single yarn contained in the waste arisen in the process of conversion from single ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im in respect of a commodity manufactured by him is undoubtedly is liable to be adjusted against the final liability. In granting this adjustment, no question of giving the reverse adjustment of the duty is sought to be contended by the revenue. It is not a question of granting Modvat credit at earlier or later stage but a question of determination of duty payable by adjustment of payment already ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
