1997 (8) TMI 236

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....994. The yarn before being reeled into hanks underwent the stage of being wound on cones from Ring Frame Machine. The department was of the view that although the cross reel hanks were eligible for clearance without paying duty, duty had to be discharged on yarn on cones captively consumed in the manufacture of such cross reel hanks. In this case the Collector (Appeals) upheld this view and confirmed the lower orders demanding duty. 2. In the appeal filed by M/s. Tuticorin Spinning Mills, the same issue was involved namely whether duty was leviable on coned yarn before its clearance for captive consumption in the manufacture of hank yarn. The Collector in this order also held against the assessee. Since these four appeals involve a ....

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.... the cited case of Orissa Weavers Cooperative Spinning Mills. In the judgment, before the Tribunal it was contended that in view of the provisions of Rules 9 and 49, removal of cotton yarn on cones for conversion into double yarn hanks amounted to removal for manufacture of another commodity and therefore the assessees were required to pay the duty at the time of removal of cones. The Tribunal did not accept this contention. The Tribunal examined the wordings of the Tariff Item 18-A and held that single yarn and multiple and double yarn were only different varieties of cotton yarn and that they were not different commodities either under the tariff heading or in commercial parlance. It was held that throughout the processes culminating into....