Exemption for dyed yarn from doubled yarn accepted where the underlying single yarn had already suffered duty.

Dyed yarn manufactured from doubled yarn qualified for exemption under Notification No. 6/2002-C.E. because the underlying single yarn had already suffered duty. The Tribunal followed its earlier decisions on the same exemption principle and treated the comparable notification as supporting the same result in analogous circumstances. On that basis, the exemption was held admissible to the appellants and the impugned orders were set aside.

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Issues: Whether the appellants were entitled to the benefit of exemption under Notification No. 6/2002-C.E. in respect of dyed yarn manufactured from doubled yarn where the underlying single yarn had suffered duty.

Analysis: The Tribunal followed its earlier decisions holding that dyed yarn manufactured from doubled yarn could qualify for partial exemption when the doubled yarn itself was made from single yarn on which duty had been paid. It also noted that a similar exemption under a comparably worded notification had already been extended in analogous circumstances, and applied that reasoning to the present case.

Conclusion: The exemption under Notification No. 6/2002-C.E. was held admissible to the appellants, and the impugned orders were set aside.

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