TaxTMI 
TaxTMI 
2015 (9) TMI 1030
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....yester filament yarn (hereinafter referred to as the 'yarn'). During the production of this yarn, it is wound on bobbins/ tubes to a standard size of 8 to 9 kg. In some cases, due to mechanical/ operational defects, the threads of yarn get broken before reaching the standard size. In such a case, the bobbins, which are partially wound, are removed and new bobbins are inserted. The partially wound bobbins are also marketed in separate lots, i.e., in the lots of 8-6 kg, 3-6 kg, 0.5-1 kg, etc. On this, excise duty is paid and there is no dispute. However, the respondent has been treating the yarn of bobbins weighing 1 kg or less as waste and thus, not marketable. It is in respect of this purported 'waste', the dispute arose, in....
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....After remand, the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as 'CESTAT') has again come to the same conclusion for which it has given detailed reasons in the impugned order which is the subject matter of the present appeal. We need not go to the entire gamut of material which was produced by the assessee before the CESTAT. The purpose will be served by recording the following discussions in the impugned order: - "The only dispute is how the appellant disposed of such yarn and whether such disposal was on payment of appropriate Central Excise Duty. The first question that would arise is how such yarn was accounted by the appellant after the log sheet (machine) stage. The other question is whether s....
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....pellant's factory confirm that the part of yarn was treated as waste. Waste yarn arises only after production of yarn on machines. This makes it clear that part of the yarn entered in the log sheet account was subsequently treated as waste. Therefore, there is merit in the contention of the appellant that, even though the yarn of less than 1 Kg. is emerging at the spinning stage, such yarn does not get sold by the appellant as yarn. That part gets classified as waste and is disposed of accordingly. The description of the waste as made in the various contemporaneous correspondence and the description of the waste checked and certified by the officer at the time of stock taking confirm that part of the waste is of yarn. In these facts and....