2001 (12) TMI 233

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.... Appellant. Shri V.M. Udhoji, JDR, for the Respondent. [Order per : G.R. Sharma, Member (T)]. - The facts of the case briefly stated are that the appellants are engaged in the manufacture of yarn. They cleared only doubled or multi-folded yarn. A dispute arose as to whether duty shall be payable on the hard waste generated in the process of multi-folding/doubling of the single yarn. The a....

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.... and was manufacturing doubled/multi-folded yarn only at the request of the customers whereas in the case of the present assessee yarn in the doubled or multi-folded stage was only cleared and no single ply yarn was cleared by the assessee He, therefore, submits that their case is clearly distinguishable from the case relied upon by the authorities below and prays that in this view of the matter, ....

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....eme Court. We note that the yarn becomes excisable the moment it appears on the spindles in the single ply form. The time of collection of duty is deferred. Since the yarn becomes excisable the moment it appears on the spindle, therefore, any wastage which is generated subsequent to this stage will be excisable and duty shall have to be paid on it as was held by the Hon'ble Supreme Court. We do no....