https://www.taxtmi.com/caselaws?id=41001 Manufacture of yarn is treated as complete when the yarn emerges from the spindle stage, because that is when the goods first come into existence. Sizing done afterwards is not an essential, incidental or ancillary part of manufacture, but a post-manufacture process. Excise duty under Tariff Item No. 18E is therefore chargeable at the spindle stage, and later sizing or removal of the sized yarn from the factory does not change the point of liability. A contrary observation relied on by the assessees was regarded as obiter and not controlling. en-us Fri, 04 Sep 1981 00:00:00 +0530 Wed, 19 May 2010 16:27:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=41001 Manufacture of yarn is treated as complete when the yarn emerges from the spindle stage, because that is when the goods first come into existence. Sizing done afterwards is not an essential, incidental or ancillary part of manufacture, but a post-manufacture process. Excise duty under Tariff Item No. 18E is therefore chargeable at the spindle stage, and later sizing or removal of the sized yarn from the factory does not change the point of liability. A contrary observation relied on by the assessees was regarded as obiter and not controlling. Case-Laws Central Excise Fri, 04 Sep 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=41001