1994 (1) TMI 107

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....L(b) of the Central Excise Act. The appellant, Bhilwara Spinners Ltd. is engaged in the manufacture of fabrics. For that purpose it manufactures yarn. It is stated that the appellant manufactures four types of yarn, viz., cellulosic spun yarn, cotton yarn, woollen yarn, acrylic yarn and non-cellulosic spun yarn. These four (sic five) types of yarn are dutiable under Tariff Items 18III, 18A, 18B an....

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....the single yarn. This explanation was rejected by the Assistant Collector by his order dated 10-12-1988. The operative portion of his order reads thus : "The explanation added to Rules 9 and 49 very clearly shows that it is not necessary for the purpose of removal or utilisation that a new or different item should come into existence. There is no doubt about the fact that the excise duty is ....

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....te weaving of cloth and it is, therefore, a further step towards manufacture of cloth. 4.In this appeal, it is contended by Sri Dave, learned counsel for the appellant that inasmuch as the appellant is paying duty upon the doubled yarn and because doubled yarn and single yarn are one and the same goods, no duty ought to be levied upon the single yarn. He submits that single yarn is obtained at ....

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....ility of the doubled/multifolded yarn is concerned, Shri Dave relies upon the observations in the orders of the authorities below to contend that single  yarn  and  doubled/multifolded  yarn  are  one  and  the  same  goods and hence duty cannot be levied twice on the same goods. On the other hand, Shri Vellapally, learned counsel for the responden....