1981 (3) TMI 243

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....o as "Swadeshi") to Supreme Cotton Ginning Mills, Khanna (hereafter referred to process of sorting, cutting (by fibre cutting machines designed for converting two/crimped uncut waste into polyester fibre), garnating and carding and further mixed it with cellulosic staple fibre for converting into sub-standard mixed yarn. 3. The appellants had obtained licence for manufacture of yarn and were complying with Central Excise formalities including payment of duty on the yarn manufactured in their factory. 4. It was alleged against the appellants that they had manufactured polyester fibre out of polyester crimped uncut waste with the help of the aforementioned processes without obtaining Central Excise licence for manufacture of fibre....

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....) that the waste at pre-drawn stage cannot be deemed to have assumed the characteristics of either fibre or yarn and that these would not normally be classifiable as wastes of synthetic fibre or yarn and (ii) that some of the undrawn wastage could be generated and then carded and combed to be formed into tops for blending with waste. After careful consideration of the issue, the trade is informed that while solidified waste was definitely not fibre, in the case of undrawn spinning waste, excisability will be decided upon the basis of their capability for use in the manner as described at (ii) above. In other words, the excisability in each case will be determined on merits. Attention of the trade is also invited to the Ministry's Notificat....