Twisting/supn of single yarn-Manufacture

[Narendra Soni]

Dear Experts,

If a manufacturer imports polyester yarn and twist/spun/doubling the same, Is the 'spun/twisted polyester yarn' product amount to manufacture.

[CSSANJAY MALHOTRA]

Dear Mr. Soni,

Conversion of Single Yarn into Double or Multifold amounts to "Manufacture" reasons being cited below.

Section 2(f) of Central Excise Act defines Manufacture as any process incidental or ancillary to the completion of final product. Further note that both the products i.e. Single Yarn and Double Yarn are different in character and use also.

Even the Central Excise Tariff Headings are also different and the basic principle is that where the tariff headings changes, the process of manufacture results in and it has been followed in various cases and accepted by CBEC.

Refer to Clause 2 of Notes to Chapter 55 of Central Excise Act for Man-Made fibres, which is reproduced as below:

2. In relation to products falling under heading 5508 or 5509 or 5510, dyeing, printing, bleaching, mercerising, twisting, texturising, doubling, multiple-folding, cabling, air mingling, air texturing, any other process or any one or more of these processes, or the conversion of any form of the said products into another form of such product shall amount to 'manufacture

Hope the above addresses your query.

 

 

 

[Rajagopalan Ranganathan]

Sir

Very apt clarification

[KASTURI SETHI]

SH.CS SANJAY MALHOTRA Ji,

Interpretation is par excellence. No need to intervene and hence question of interference does not arise.

[CSSANJAY MALHOTRA]

Thanks to Seniors for validating the response.

[Mahir S]

Yes, such activity do amount to manufacture , as nicely explained above.

AI Summary

Manufacture: Twisting or doubling polyester yarn alters product character and changes tariff classification, thus constituting manufacture. Twisting, spinning or converting imported polyester single yarn into doubled, multifold or twisted yarn constitutes manufacture because the process changes the product's character, use and tariff classification; statutory notes for man made fibres expressly list twisting, doubling and related processes as amounting to manufacture.