https://www.taxtmi.com/caselaws?id=50887 Exemption for cabled yarn under Heading 56.07 was held available where the yarn was made from duty-paid monofilament lycra yarn and captively used cotton material, once the duty position on the cotton input was regularised. The record did not clearly establish that the intermediate material was cotton roving rather than cotton yarn, and the declarations and classification lists disclosed the manufacturing process. In the absence of proved suppression or misstatement, the penalty was unsustainable, and the demand was required to be recomputed in light of duty, if any, on the captively consumed cotton yarn. en-us Wed, 19 Sep 2001 00:00:00 +0530 Sat, 18 Sep 2010 11:51:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=50887 Exemption for cabled yarn under Heading 56.07 was held available where the yarn was made from duty-paid monofilament lycra yarn and captively used cotton material, once the duty position on the cotton input was regularised. The record did not clearly establish that the intermediate material was cotton roving rather than cotton yarn, and the declarations and classification lists disclosed the manufacturing process. In the absence of proved suppression or misstatement, the penalty was unsustainable, and the demand was required to be recomputed in light of duty, if any, on the captively consumed cotton yarn. Case-Laws Central Excise Wed, 19 Sep 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=50887