https://www.taxtmi.com/caselaws?id=43438 Partially oriented yarn cleared from the factory gate was liable to excise duty only as base yarn, because duty attaches to the commodity as it exists at the time of clearance. The tariff entry and exemption notifications treated base yarn and textured yarn as distinct products, so the department could not levy duty at the textured yarn rate on the basis that further processing would occur later. The circular relied upon did not authorise such a levy, and the provisional assessment was therefore unsustainable. The demand based on the textured yarn rate could not be sustained, and the assessee succeeded. en-us Wed, 11 Mar 1992 00:00:00 +0530 Fri, 18 Jun 2010 10:29:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=43438 Partially oriented yarn cleared from the factory gate was liable to excise duty only as base yarn, because duty attaches to the commodity as it exists at the time of clearance. The tariff entry and exemption notifications treated base yarn and textured yarn as distinct products, so the department could not levy duty at the textured yarn rate on the basis that further processing would occur later. The circular relied upon did not authorise such a levy, and the provisional assessment was therefore unsustainable. The demand based on the textured yarn rate could not be sustained, and the assessee succeeded. Case-Laws Central Excise Wed, 11 Mar 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=43438