TMI Blog2006 (8) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Bar, and Shri Ajay Saxena, learned SDR for the Revenue. 3. We find that the issue referred stands settled in favour of the assessees by the Apex Court's decision in CCE, Jaipur v. Banswara Syntex Ltd. - 1996 (88) E.L.T. 645 (S.C.), holding that "A single ply yarn is first manufactured and thereafter it is doubled or multifolded, depending upon the type of fabric to be woven. The liability to pay excise duty would arise on the manufacture of the single ply yarn and not after the same has been doubled or multifolded. Doubling or multifolding of the same yarn does not bring into existence a new product and no duty is leviable at that stage.' The Supreme Court has decided that the stage of levy of excise duty in such cases is the singl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Finance Act, 1982 came up for interpretation. It was held that "In view of the deeming provisions under explanation to Rules 9 and 49, although the goods which are produced or manufactured at an intermediate stage and, therefore, consumed or utilised in the integrated process for the manufacture of another commodity is not actually removed, shall be construed and regarded as removed." Dealing with the question of conversion of unsized yarn into sized yarn it was observed at page 250 as follows : "In our view, the High Court by the impugned judgment has rightly held that the appellants are not liable to pay any excise duty on the yarn after it is sized for the purpose of weaving the same into fabrics. No distinction can be made betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention of the appellant therein was that both single stage yarn and doubled/multifolded yarn are one and the same goods and inasmuch as it was paying duty on the doubled/multifolded yarn no duty was payable on the single yarn. The appellate Collector accepted this contention but the Tribunal agreed with the Revenue. This Court, in appeal, did not go into the question whether single yarn or doubled/multifolded yarn are one and the same goods and observed as follows :- "We are concerned in this case with the only question whether single yarn attracts duty or not. In view of the finding of the Tribunal affirming the finding of the Assistant Collector that single yarn is a completely manufactured product, it cannot be disputed that it attrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the same yarn does not bring into existence a new product and no duty is leviable at that stage. 4. Learned SDR's reliance on the decision of the Supreme Court in Aditya Mills Ltd. v. UOI - 1988 (37) E.L.T. 471 (S.C.), holding that PPRF yarn consisting of two plies of polyester spun yarn - PP and one ply of rayon filament yarn - RF doubled together, is different from polyester spun yarn and rayon filament yarn and doubling and twisting of two different yarns amounts to manufacture of a new type of yarn, is misplaced for the reasons that the product under consideration was composed of two different yarns while in the present case duty paid single ply yarn of only one type or variety is doubled or multifolded and further in Aditya Mills ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Assistant Commissioner for determination of the factual basis of this claim, as seen from 2005 (183) E.L.T. 238 (S.C.) = 2005 (68) RLT 343 (S.C.). 6. As regards the fact that complete exemption from payment of excise duty is granted to doubled or multifolded yarn including doubled yarn manufactured out of duty paid yarn falling under chapters 52, 54 or 55 of the Schedule to the CETA, 1985, in terms of Serial No. 50 of the table to notification 31/93-C.E. dated 28-2-1993, noted by the referring bench, it is well settled that mention of an item in an exemption notification is not determinative of its excisability (see Kiran Spg. Mills Thane v. CCE, Bombay - 1984 (17) E.L.T. 396 and CCE, Chandigarh v. Metro Tyres - 1995 (80) E.L.T. 79 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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