2001 (1) TMI 343

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.... Shri R.C. Sankhla, JDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. -  The appellant manufactured woollen yarn and used it captively for the manufacture of carpets. The present proceedings relate to the assessment of such yarn for the period from 25-7-1994 to 30-9-1994. The rate of duty during that period was to be determined in terms of Notification No. 26/94, dated 1....

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.... issued claiming differential duty on account of assessment of the goods under Sl. No. 1B as yarn of wool attracting duty on 10% ad valorem. The notice contented that the assessee's yarn came into existence in cone form and, therefore, duty was payable at 10% ad valorem. This demand was confirmed in the adjudication order and in the order-in-appeal. The present appeal before us challenges those or....

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....f Central Excise Authority v. Oswal Woollen Mills Ltd. reported in 2000 (120) E.L.T. 786 (Tribunal). The Counsel also submitted that it is settled law that carrying out of one process like conversion into cone packing could not amount to manufacture, attracting demand of duty. He, cited the following decisions in support of his contention :- 1. J.K. Cotton Mills Ltd. v. C.C.E. [1987 (32) ....

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.... [2000 (91) ECR 856 (T)] 5. It is clear from a perusal of Notification No. 26/94 as amended in 90/94 that "yarn of wool in plain (straight) reel hanks," whether single/ multifold, alone was eligible for full exemption under Sl. No. 1A. Yarn of wool in any other form was liable to duty at 10% ad valorem under Sl. No .1B. In the appellant's case, it is undisputed that the manufacture of ya....