Yarn duty demand based on test results applies for the intervening period between successive sample drawals.

Duty on yarn was to be computed with reference to the test result of yarn count, and the relevant levy period was the interval between successive sample drawals for the same count. Sample patterns and test results taken from time to time had to be considered when working out the demand, and the assessee had to be given an opportunity of hearing on that basis. The demand was upheld for the intervening period between the sample dates, subject to examination of the sample test results and hearing of the assessee.

---

---

Issues: Whether duty on yarn was demandable for the period between the drawal of one sample and the drawal of the next sample, on the basis of the higher count ascertained on test.

Analysis: The duty liability was determined by reference to the test result of the yarn count, and the relevant period for levy was the interval between successive sample drawals for the same count. The sample pattern and test results taken from time to time were required to be considered while working out the demand, and the assessee was to be heard in that regard.

Conclusion: The demand was upheld for the intervening period between the dates of drawal of samples, subject to consideration of the sample test results and an opportunity of hearing to the assessee.

---