2004 (5) TMI 333

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....has held that the single ply yarn obtained on cops/bobbins from the spinning machine when poured (wound) into cones does not bring about any material/substantive change either in the name, character and usage in the substance because the cones received single ply yarn only and yarn remained in single ply yarn form only at all times on cones till it is marketed. He has held that to make the single ply yarn at cops/bobbin stage marketable, it is wound to cones in single ply yarn which does not result in the emergence of a new product and, therefore, cannot either be called as conversion or captive consumption, as the assessee have not produced any new product therefrom. He has noted that the Assistant Commissioner has already stated that the ....

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....t deal of new goods having come into existence. Hence, we are of the view that this judgment is distinguishable. 5. Learned SDR again relied on the judgment of Birla Transasia Carpet Ltd. v. CCE, Meerut - 2001 (129) E.L.T. 355 (Tri.-Del.) which also deals on the interpretation of Notification No. 26/94-C.E.. It was held to be not applicable to woollen yarn in plain (straight) reel hanks after manufacture if converted into cones and removed in cone form for the manufacture of carpets in the factory, in terms of the wordings appearing in the Notification which grants benefit only to "yarn of wool in plain (straight) reel hanks" whether single/multifold. Since the yarn was not removed in hanks therefore, the benefit was not granted. This....