1991 (3) TMI 151

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....h a show cause notice dated May 24, 1983. The show cause notice has been issued on the ground that under T.I. No. 18E, in the case of non-cellulosic spun yarn, its manufacture is complete after it is sized. Thus the duty is chargeable on weight after sizing as required under Rule 9 (as amended) of the Central Excise Rules, 1944 whereas the petitioner mill company has paid the duty on its unsized w....

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....d the legality and validity of the notice and have prayed for a declaration that the excise duty in respect of cellulosic spun yarn and non-cellulosic spun yarn falling under Tariff Item No. 18III(ii) and 18E should be levied and collected on the weight of the unsized yarn at the spindle stage and not on the basis of the weight of the sized yarn. 3. As far as the show cause notice is concerned, i....