1998 (1) TMI 241

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....They also submitted that the staple fibre and filament yarn were duty paid and no duty could be charged again on the doubled yarn manufactured out of duty paid single yarn. Subsequently, they also pleaded that their product was not doubled yarn but twine. The Collector, Central Excise (Appeals), Bombay had held that the goods in question were correctly classifiable under sub-heading No. 5506.29 of the Central Excise Tariff and that as regards the extended period of limitation when calculated from the date of filing of the RT 12 return the demand was within time. 2. The appellants have prayed for decision on merits. 3. Shri Satnam Singh, SDR submitted that the appellants had initially classified their goods as doubled yarn and su....

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....w or different article having a distinct name, character or use results from particular process or processes, such process or activity would amount to manufacture. The moment there is transformation into a new commodity commercially known as a separate and distinct commodity having its own character and use, `manufacture' takes place. See the observations of this Court in Union of India v. Delhi Cloth & General Mills [1977 (1) E.L.T. (J 199) (S.C.) = 1963 Suppl. 1 SCR 586 ], Union of India v. HUF Business known as Ramlal Mansukhrai, Rewari & Anr. [1978 (2) E.L.T. (J 389) = 1971 (1) SCR 936], Allenburry Engineers P. Ltd. v. Ramkrishna Dalmia & Ors. [1973 (2) SCR 257], Deputy Commissioner, Sales Tax (Law) Board of Revenue (Taxes) Ernakulam v.....

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....ntaining synthetic staple fibre. Under Section Note 2(a) under Section XI of the Tariff it has been provided that the articles classifiable in Chapters 52 to 55 or in Heading No. 58.06 or 59.02 and of a mixture of two or more textile materials are to be classified as if consisting wholely of that one textile material which predominates by weight any other single textile material. 6. The appellants have pleaded that goods were covered by Chapter 56 of the Tariff which covered wadding, felt and non-wovens, special yarns, twine, cordage, ropes and cables and articles thereof. We find that in the classification list the appellants have described their goods as yarn - doubled yarn. The appellate authority had discussed the composition of t....