TaxTMI 
TaxTMI 
1997 (1) TMI 180
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....ther three companies (i.e.) other than a Diamond Thread Mills. 2. The learned Advocate for the appellants has pleaded that the duty has been demanded in respect of the sewing thread which is obtained by the appellants by winding of the yarn on the cones from the hanks. He has pleaded that the appellants have been held to have been clearing the goods manufactured by them in the name of other three firms. It has been held, he has urged that no evidence had been brought on record to establish that the goods in question were not manufactured by the other three firms and the appellants had been only raising invoices to cover their own production, with a view to stay within the exemption limit of Notification No. 1/93. He has pleaded that a....
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....nts had made a gross profit of Rs. 12,59,034.93 but the appellants have liabilities and has pleaded that they are suffering from financial crunch. He has also pleaded that if duty is asked to be paid, the benefit of Modvat credit would be available to the appellants. 4. The learned JDR for the Department has pleaded that there is evidence on record by way of statement of Zakaria who has stated that the yarn in question was infact manufactured by M/s. Diamond Thread Mills. He has pleaded that there is no ground taken in the grounds of appeal to say that the inference drawn by the learned Collector from Zakaria's statement was not borne out from what has been stated in Zakaria's statement. 5. The learned JDR has also urged that th....
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....otification (i.e.) 26/94 as amended by 90/94, there is a specific provision that the benefit of notification will not be available in case by the process as set out in the notification sewing thread comes into existence. We observe that the legislative intent has to be given full effect, unless on the wording of the notification it is clearly ruled out. In this view of the matter, we hold that the learned Lower Authority has rightly held that the benefit of notification for the manufacture of sewing thread would not be available. In regard to the plea that the appellants had not manufactured the full quantity of the goods as have been held to have been manufactured by them it has been urged that the statement of Zakaria on which the relianc....