2004 (12) TMI 445

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....il, Advocate with T.C. Nair, Consultant, for the Appellant. Shri S.V. Parelkar, JDR, for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. -  M/s. Simplex Mills Company Ltd. (hereinafter referred to as the assessee) manufactures inter alia cotton yarn, Man Made Yarn, Cotton Fabrics and Man Made Fabrics. They paid duty on single yarn at the spindle point stage. The yar....

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....which was claimed by the assessees; however he held that the double yarn would not attract duty on the ground that it was yarn other than multiple (folded) or cabled yarn under Chapter Headings 52.05 and 52.06 (in the case of cotton yarn) and other than (multiple folded) cabled yarn under Chapter headings 55.09 and 55.10 in the case of Man Made Staple Fibres and hence did not attract duty at the r....

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....n which reads as under :- (1) (2) (3) (4) (5) (5) 52, 54 and 55 (Yarn subjected to beaming, warping, wrapping, winding or reeling or any one or more of these processes, with or without the aid of power. Nil If produced out of yarn falling within Chapters 52, 54 or 55 of the said Schedule, on which the appropriate duty of excise under the said Schedule, or as the case ....

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....tiability of yarn is concerned, namely that yarn becomes dutiable at the spindle stage. If that is so, the same thing should apply to double/multiple yarn. The ld. Member (J) in the Coats Viyella (India) Ltd. case holds that mere twisting of single yarn does not bring into existence any marketable commodity unless and until the doubled yarn is subjected to process like beaming, warping, wrapping, ....