https://www.taxtmi.com/caselaws?id=41056 Cotton yarn manufactured in a composite mill and used captively for further manufacture of fabrics was treated as dutiable, because the exemption and deferment procedure only postponed collection of duty and did not remove the underlying liability. The duty on the intermediate yarn was held to form part of the cost of manufacture and was includible in the assessable value of the fabrics; the notification relied on by the assessee was inapplicable, and a later exemption could not operate retrospectively. The demand for differential duty was also upheld as time-barred objections based on the repeal of Rule 10 were rejected, since the recovery right had accrued under the then-existing rule. en-us Wed, 18 Feb 1981 00:00:00 +0530 Thu, 20 May 2010 16:37:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=41056 Cotton yarn manufactured in a composite mill and used captively for further manufacture of fabrics was treated as dutiable, because the exemption and deferment procedure only postponed collection of duty and did not remove the underlying liability. The duty on the intermediate yarn was held to form part of the cost of manufacture and was includible in the assessable value of the fabrics; the notification relied on by the assessee was inapplicable, and a later exemption could not operate retrospectively. The demand for differential duty was also upheld as time-barred objections based on the repeal of Rule 10 were rejected, since the recovery right had accrued under the then-existing rule. Case-Laws Central Excise Wed, 18 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=41056