TaxTMI 
TaxTMI 
TaxTMI 
2003 (9) TMI 626
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....er Texture Yarn (hereinafter referred as PTxY) from Partially Oriented Yarn (hereinafter referred as POY) which is purchased. This PTxY is entirely consumed and is not cleared for home consumption, no duty is paid on it when captively consumed for manufacture of twisted yarn (hereinafter referred to PTY) by virtue of Notification No. 67/97-CE. PTY is however, cleared on payment of appropriate duty to the appellant's sister concern for dyeing were duty is paid on Dyed yarn. Thereafter such dyed yarn is cleared on payment of duty to independent customers also. The PTY sent to the sister concern for dyeing is sent on job work basis under the provision of Notification No. 214/86-CE. PTY is also cleared for export after dyeing from the sister un....
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.... duty paid on inputs lying in stock on 1-3-2000 in terms of Rule 57H(7)(A), since that credit has been utilised by the appellants, a demand of duty was made for the same. Penalties were also imposed on the appellants and on employees. 4. After hearing both sides and considering the matter it is found:- (a) The Commissioner in the impugned order has relied upon the registration certificate, granted to the appellants, to hold that the appellants are independent texturisers and hence the bar contained in Rule 57AB(2)(c) is applicable. However, this registration certificate does not refer the appellants as an independent texturisers, as found by the Commissioner. The registration certificate apar....
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....ll not be allowed in respect of texturised yarn (including draw-twisted or draw-wound yarn) of polyesters falling under Heading No. 54.02 of the said First Schedule, manufactured by an independent texturiser, that is to say, a manufacturer engaged in the manufacture of texturised yarn (including draw-twisted or draw-wound yarn) of polyesters falling under Heading No. 54.02, who does not have the facility in his factory (including plant and machinery) for manufacture of partially oriented yarn of polyesters falling under sub-heading No. 5402.42 of the said First Schedule.'' (d) A plain reading of the above, indicates that in relation to PTxY, an 'Independent Texturiser' will be such a manufacturer, who is....
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....ation No. 67/95-C.E. and cleared twisted polyester yarn from the factory on payment of appropriate duty and therefore they have rightly availed credit on POY, is not valid and is not acceptable.'' cannot be upheld, since no reasons are arrived at as to why by doing process of twisting, on Texturised Yarn, the unit should be an independent Texturiser. There is no reason to conclude that the appellants 'main process undertaken' is of 'Texturising' merely on basis of POY machinery not being available since they are also licenced as "Twisters of Yarn" also. The process of 'Twisting' not being mentioned in the notification would not lead to the conclusion as arrived at. Th....
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....114 of Notification No. 6/2000-C.E. (f) The duty paid on the 'twisted yarn' has therefore to be treated as reversal of credit of duty availed on POY is a submission made relying on the following decisions of the CEGAT. (a) 2002 (143) E.L.T. 619 - Singh Scrap Processors Ltd. v. CCE Mumbai-1 (b) 1997 (96) E.L.T. 659 (Tribunal) - Deioners Speciality Chemicals Pvt. Ltd. v. CCE (c) 2002 (145) E.L.T. 322 (Tribunal) = 2002 (49) RLT 741 (Tri) - CCE v. Primal Spinning & Weaving Mills Ltd. And that cannot be found fault with. (g) As regards demand of Rs. 3,16,898/- as....