1997 (7) TMI 333

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....g is done by twisting these yarns under different tensions, in the texturising machine by feeding yarn at different speeds and at different tensions, a slubbing effect appears on the resultant twisted yarn which is called Taspa yarn. A Show Cause Notice was issued on 29-1-1990 demanding duty on Taspa yarn for the period 13-9-1986 to 27-11-1987 alleging that the Taspa yarn produced is of the category of Special yarn covered by Heading 56.06 of the Central Excise Tariff Act, 1985; duty demand mentioned in the Show Cause Notice was Rs. 3,47,674.64. The Additional Collector of Central Excise & Customs, Surat adjudicated the matter. It was held that the yarn manufactured answered the description of special yarn under Heading 56.06. The demand wa....

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....n. Bhogilal Dhamanwala of the appellants in his statement on 12-3-1988 has stated that they have produced Taspa yarn in which Nylon yarn of 20 deniers and Polyester yarn of 30 denier were used. He described the process of manufacture saying that they have one Lohia machine and in the manufacture of Taspa yarn, the two yarns are simultaneously fed in the machine with different tensions. Polyester yarn is fed with a higher tensions and Nylon yarn is fed with a lower tension. The yarn which is running at higher tension gets shrunk because of its Polyester quality while other yarn which running at the lower tension being Nylon yarn does not get shrunk, but gives the slub effect; it is seen that the appellants heavily relied upon the Departmenta....