https://www.taxtmi.com/caselaws?id=43370 Cotton yarn and cellulosic spun yarn moved from the manufacturing department into other mill departments for consumption in making cotton fabrics were held to have been "used" within the exemption notification, because use begins when the yarn enters the manufacturing stream and is not confined to the final product stage. Under Rule 9, read with the retrospective explanation, such goods are deemed removed immediately before consumption or utilisation, so duty is determined by the law then in force. A later notification could not retrospectively impose excise duty on yarn that had already attracted exemption, and a demand notice based on prior duty forgone was unsustainable. en-us Tue, 21 Aug 1990 00:00:00 +0530 Thu, 17 Jun 2010 16:37:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=43370 Cotton yarn and cellulosic spun yarn moved from the manufacturing department into other mill departments for consumption in making cotton fabrics were held to have been "used" within the exemption notification, because use begins when the yarn enters the manufacturing stream and is not confined to the final product stage. Under Rule 9, read with the retrospective explanation, such goods are deemed removed immediately before consumption or utilisation, so duty is determined by the law then in force. A later notification could not retrospectively impose excise duty on yarn that had already attracted exemption, and a demand notice based on prior duty forgone was unsustainable. Case-Laws Central Excise Tue, 21 Aug 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=43370