2017 (3) TMI 1447

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.... the stage of fibre (synthetics or manmade fiver or cotton) manufacture spun yarn. The spun yarn is accounted for in the RG-1 register at spindle stage i.e. the weight of the yarn on spindle is entered in the RG-1 register. Thereafter, the yarn is used captively for manufacture of grey fabrics which are subsequently processed. The dispute in this case is about the assessable value of the spun yarn at the spindle stage. The yarn before being used for manufacture of fabrics, is subjected to the processes of winding, reeling, warping, doubling/multi folding, dyeing, sizing, beaming etc. Since during the period of dispute, there were no factory gate sales of the yarn and the cost of comparable goods manufactured by other manufacturers was also ....

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....as manmade yarn cleared for captive consumption during the impugned period and the manmade yarn subjected to the winding and warping cleared for captive consumption during the impugned period. This duty demand confirmed also included spun manmade yarn purchased from the market and subjected to the above processes of winding, warping etc. or doubling/multi folding and subsequently used in the factory for weaving of fabrics. In this order, the Commissioner besides confirming the above duty demand, also imposed penalty against the order. The appeal has been filed by the appellant company. 3. The Authorised Representative of the Ld. Counsel for the appellant submits that the issue has already been settled in their favour in their own case vi....

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...., even though those processes may amount to manufacture. Moreover, the subsequent processes-winding, doubling or multi folding are fully exempt from duty in terms of Notification No.35/95-CE and successor exemption Notification No.8/96-CE, 4/97-CE, 5/98-CE, 5/99-CE, 6/2000-CE and 3/2001-CE subject to the condition that the processes have been carried out on the duty paid yarn which is meant for weaving of fabrics within the factory and in these cases it is not in dispute that the single ply yarn was duty paid and the same had been used within the factory for weaving. The judgments of Apex Court in cases of Sidhartha Tubes ltd. Vs.CCE (Supra) relied upon by the Commissioner would be applicable only if the assessee had cleared the doubled/mul....