2005 (9) TMI 481

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....r : T.K. Jayaraman, Member (T)]. -  This is an appeal filed by the Revenue against Order-in-Appeal No. 121/98 dated 29-9-98 passed by the Commissioner of Central Excise (Appeals), Trichy. 2. The respondents received cake yarn for conversion into cone yarn. This process of conversion from cake yarn to cone yarn amounts to manufacture in view of the Note 3 to Chapter 54 introduced with e....

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....ty does not arise. According to the Revenue, the above statement is erroneous in law. What was demanded by the Order-in-Original was levy of duty under Section 3 at the points of manufacturing rayon yarn. The fact that the cake yarn has already suffered duty on provisional assessment basis and differential duty was paid on sales through depots/finalization of provisional assessment does not alter ....