Captively used yarn assessable at unsized weight where precedent on Central Excise Tariff valuation was applied.

Yarn falling under Item 18E of the Central Excise Tariff, when manufactured in the assessee's factory and captively used in the same factory for weaving fabrics, was held assessable at unsized weight. The Tribunal applied earlier orders on the same point, which had followed High Court judgments, and noted that the department advanced no contrary submission. The existing ratio was applied to the appeals on the facts, resulting in assessment at unsized weight and consequential relief.

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Issues: Whether yarn falling under Item 18E of the Central Excise Tariff, manufactured in the assessee's factory and captively used in the same factory for weaving of fabrics, was assessable at unsized weight.

Analysis: The issue was covered by earlier Tribunal orders on the same point, which had followed High Court judgments. No contrary submission was made by the department. The existing ratio was applied to the facts of the appeals.

Conclusion: The yarn captively used in the assessee's factory for weaving of fabrics was to be assessed at unsized weight, and the appeals were allowed with consequential relief.

Ratio Decidendi: Captively used yarn in the same factory for weaving of fabrics is assessable at unsized weight where the governing precedent so directs.

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