1985 (1) TMI 66

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....ccording to them base yarn is either purchased by them which is then processed to introduce crimps, coils, loops or curls or at times base yarn is sent to them for such processing. The case of the petitioners is that they do not undertake any manufacturing activity which can subject them to the levy of excise duty. 3.  The entry under which excise duty is sought to be levied is Entry 18. The relevant Entry 18(II) reads as follows : "Item No. Description of Goods Rate of Duty     Basic Speciapal Excise 18.11 Man-made filament yarns: (i) Non-cellulosic (a) Other than textured Eighty five rupees per kilogram, Ten per cent of basic duty charged.   (b) textured Ninety five ru....

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.... 18 provides for a lower duty on untextured yarn. The duty is levied on the product. The product is textured yarn. The explanation to the said entry exhaustively defines what textured yarn means. According to the explanation "textured yarn" means yarn which has been processed to introduce crimps, coils, loops or curls etc. The explanation, therefore, postulates that the processor has to obtain yarn which is then subjected to the said process of texturising. The entry does not indicate that it is the manufacturer of yarn alone who could be the processor. Ordinarily it may be said that processing of yarn may not tantamount to a manufacturing activity being undertaken. In the present case, however, in view of the said explanation, texturising ....