TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether synthetic tops polyester tops and manmade yarn used within the factory in the manufacture of yarn and further in the manufacture of fabrics were entitled to exemption under Notification No. 67/95-CE and Notification No. 22/96-CE, with the consequence that no additional duty of excise was payable.
Analysis: The exemption under Notification No. 67/95-CE and Notification No. 22/96-CE was examined with reference to the use of the inputs within the factory of production in relation to the manufacture of the corresponding final products. The goods in question were synthetic staple fibres of polyester classifiable under sub-heading 5506.20, used for manufacture of yarn, which was then used in manufacture of fabrics. The relevant notifications exempted the goods from the whole of duty of excise leviable thereon, and the additional duty of excise under the textile levy was held to follow the effective excise duty. Since the basic excise duty was exempt and the goods were used captively in the manufacture of the final products covered by the notification, the additional duty also became nil.
Conclusion: The goods were covered by the exemption notifications and no duty demand survived; the issue was decided in favour of the assessee.
Final Conclusion: The appeal failed because the exemption applied to the goods used in the manufacturing chain, and the impugned order dropping the proceedings was sustained.
Ratio Decidendi: Where inputs are exempted under the applicable exemption notifications and are used within the factory in relation to the manufacture of the final products covered by the notification, the corresponding additional excise duty based on the effective excise duty also does not arise.
TaxTMI 
TaxTMI 
