2004 (4) TMI 479

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..... Mrs. Charul Barnwal, SDR, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. -  The issue involved in this appeal, filed by M/s. Auro Spinning Mills, is whether Central Excise duty is payable at single yarn stage or on double/multifold yarn. 2. Shri Vishal Bansal, learned Advocate, submitted that the appellants manufacture cotton yarn and man-made yarn; that the pr....

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....ly; that it has been held by the Appellate Tribunal in the case of Adinath Textiles Ltd. v. C.C.E., 2001 (134) E.L.T. 387 (T) that the duty is payable at the single yarn stage; that the Tribunal, has, further, held that Notification No. 26/94, as amended by Notification No. 90/94, dated 25-4-94, provides nil rate of duty in respect of doubled or multifolded yarn if manufactured out of yarn on whic....

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....ace when single yarn is taken for subjecting it through the process of doubling within the factory of production no duty would be payable at the single yarn stage and duty will be collected only at the time of removal of the resultant yarn in terms of Rule 9 of the Central Excise Rules. 4. We have considered the submissions of both the sides. It had been held by the Supreme Court in the ca....

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...." The Supreme Court, therefore, held that the same principle would be applicable when the single ply yarn is first manufactured, thereafter, it is doubled or multifolded and the liability to pay excise duty would arise on the manufacturer of the single ply yarn and not after the same has been doubled or multifolded. In view of this judgment of the Supreme Court, the duty is payable at the single y....