Double excise levy on treated polyester waste rejected where the same material had already been assessed as fibre.

Post-drawn polyester waste that had already been treated as fibre and cleared on concessional duty under Notification No. 53/72-C.E. could not be subjected to a second central excise levy under Tariff Item 18B. The document states that, because the material had already suffered duty in that character, a further levy on the same processed waste would amount to impermissible double taxation. It also notes that the quantity dispute did not survive, leaving the liability question as the only material issue. The stated result is that the second levy was not sustainable and the assessee succeeded.

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Issues: Whether post-drawn polyester waste processed into fibre by the assessee was again liable to central excise duty under Tariff Item 18B, and whether the duty already borne by such waste under the relevant notification precluded a further levy.

Analysis: The material processed by the assessee had already reached the stage of fibre and was treated as post-drawn waste. Such waste was recognised as fibre for excise purposes, though it was allowed concessional clearance as waste under Notification No. 53/72-C.E. dated 17-3-1972. Once the same material had already suffered duty in that character, subjecting it again to duty under Tariff Item 18B would amount to double taxation. The dispute on quantity did not survive, and the central question was only the liability of the processed material to a second levy.

Conclusion: The levy of duty again on the processed post-drawn waste was not sustainable, and the assessee was entitled to succeed.

Final Conclusion: The appeal was allowed on the basis that the processed waste could not be subjected to a second excise levy after having already been treated and assessed as fibre under the applicable notification regime.

Ratio Decidendi: Where a product has already been treated as excisable fibre and cleared on concessional duty as waste under a specific notification, it cannot be subjected to a second levy under the tariff on the same characterisation, as that would result in impermissible double taxation.

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