2017 (11) TMI 276

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....nd Mr. Raju, Member (Technical) Shri. Rajesh Ostwal, Advocate for appellant Shri. Ajay Kumar, Addl. Comm. (AR) for respondent ORDER Per: Ramesh Nair 1. The fact of the case is that the appellant is engaged in the manufacture of Synthetic Filament Yarn. During the manufacture, some samples of yarn is drawn from the manufacturing stream and the consumption is taken for quality test, t....

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....no excise duty is required to be paid when record of said samples is maintained. In the present case there is no dispute that the record of sample is maintained. In this regard, he placed reliance on the following decisions:  a) Economic Explosives Ltd. - 2009 (242) ELT A86 (Bom)  b) Dabur India Ltd. - 2005 (182) ELT 185 (Tri-LB) 3. On the other hand, Shri Ajay Kumar, Ld. Additi....

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....T 57 (Tri-Mumbai). 4. We have carefully considered the submissions made by both sides. We find that the fact is not under dispute that the appellants have drawn the samples of synthetics filament yarn from the production before packing and before entering into RG-1 register. The record of the said drawal of samples was maintained by the appellants. After testing of the samples, it gets converte....

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....d to be paid on the goods, which is removed from the factory. In the present case, the goods removed from the factory is undisputedly waste yarn. Therefore, the clearances of waste yarn and payment of duty thereon on the value of waste yarn is correct and legal. Similarly, in other decisions of Bhansali Engineering Polymers Ltd., J.K. Industries Ltd., Gulf Oil Corporation Ltd. (supra), it was held....