TaxTMI 
TaxTMI 
TaxTMI 
2011 (1) TMI 726
X X X X Extracts X X X X
X X X X Extracts X X X X
....rned DR for the Revenue and have considered the submissions and also records of the case. 3. The relevant portion of the Notification No. 29/2004-C.E., as amended, which is the basis for the dispute is reproduced below :- Sr. No. Chapter or heading No. or sub-head-ing No. Description of the goods Rate under the first schedule 5A 54 All filament yarns procured from outside and subjected to any process by a manufacturer who does not have the facilities in his factory (including plant and equipment) for the manufacture of filament yarns of Chapter 54. 8% Explanation - For the purpose of this exemption, 'manufacture of yarns' means manufacture of filaments of organic polymers produced by :- (a) polymerization of organic monomers, such as, polyamides, polyester, polyurethanes or polyvinyl derivatives; or (b) chemical transformation of natural organic polymers (cellulose, casein, proteins or algae), such as, viscose rayon, cellulose acetate, cupro or alginates. 4. According to the notification the following are the conditions which are required to be fulfilled for availing the benefits :- (....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ervations of the learned Commissioner in his order-in-original for coming to the conclusion that appellants were not eligible for exemptions and the Tribunal had reproduced the same. We find that similar observations have been made in this impugned order also. Hence observations of Commissioner reproduced in DNH Spinners case are reproduced below :- "I find that between the words filaments and organic polymers a word 'of' is used in the explanation. I find that 'of' is a preposition and the meaning of word 'of' given in the OXFORD Paperback Dictionary Thesaurus and wordpower Guide is as under : 'Of - prep. 1 expressing the relationship between a part and a whole. 2 belonging to; coming from. 3 used in expressions of measurement, value, or age. 4 made from. 5 used to show position : north of Watford. 6 Used to show that something belongs to a category : the city of Prague.' I find that appropriate meaning for word 'of' in the explanation is 'made from'. By putting the word 'made from' in place of 'of', I find that as per the said explanation 'manufacture of yarns' means manufacture of filaments made from organic polymers produced by (a) polymerization of organic monomers,-----; o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ner's Case. For the purpose, a chart of the notifications was produced, which is reproduced as under :- COMPARATIVE CHART Notification No. 29/2004-C.E., dated 9-7-2004 Notification No. 85/95-C.E., dated 18-5-1995 Notification No. 4/97-C.E., dated 1-3-1997 All filaments yarns procured from outside and subjected to any process by a manufacturer who does not have the facilities in his factory (including plant and equipment) for the manufacture of filament yarns of Chapter 54. Exempts wastes of man-made staple fibers and man-made filament yarns... Falling within Chapters 54 and 55 of the schedule to the Central Excise Tariff Act, 1985 [5 of the 1986], from so much of the duty........ All goods produced in a factory other than a factory producing man-made staple fibres or main-made filament yarns of organic polymers by manufacturing processes, either by polymerization of organic polymers or chemical transformation of natural organic poly- Explanation - For the purpose of this exemption, manufacture of yarns' means manufacture of filaments of organic polymers produced by :- Provided that the exemption contained in this notification shall not apply to a factory producing man-made....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e cases relied upon by the appellant. On going through the judgments relied upon by the appellants viz. Indian acrylic Limited and Swadeshi Polytex Limited, it can be seen that both the units were manufacturing man-made staple fibers by polymerization of organic monomers. The issue was as to whether the benefit of the relevant notifications could be extended in such case, particularly, as the notification speaks about manufacture of man made filament yarn by polymerization of organic polymers. Whether the benefit of the notification can be extended in case a unit does not have he facility for manufacture of organic polymers was never the subject matter of the appeal. In the DNH case, the Tribunal has in detail gone through the issue as to whether an unit should have the facility to produce organic polymers from polyester chips and then manufacture polyester filaments therefrom or manufacture of polyester filaments from organic polymers is sufficient for denying the benefit of Notification No. 29/2004-C.E. The Tribunal has categorically stated that production of polymers is totally in a different line altogether and thereafter production of filament yarn, texturisation, dyeing etc. ....