2003 (1) TMI 105

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....e in a continuous process in their factory. The question that arises for consideration in this appeal is whether the appellant is liable to pay central excise duty on the manufacture of the single ply yarn or at the stage when the single ply yarn is converted into double ply yarn/multi-fold yarn when the same is cleared from the factory. The stand of the revenue is that on the manufacture of the single ply yarn the same is exigible to duty, therefore, the appellant is liable to pay duty at that stage. The appellant contends that the single ply yarn manufactured by it is not cleared from its factory but is used in a continuous process in converting the same into a double or multi-fold yarn. Therefore, it is liable to pay duty at the stage wh....

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....he earlier view of this Court in the case of Bhilwara (supra) as well as Banswara Syntex (supra) requires reconsideration. 4.We have carefully gone through the above-cited judgment and find no reason to agree with the contention of Mr. Dave. Though this Court in the case of Polyset Corporation (supra) following an earlier judgment of this Court in the case of Wallace Flour Mills Co. Ltd. v. Collector of Central Excise, Bombay [1989 (44) E.L.T. 598 (S.C.)] held "Excise is a duty on manufacture or production. But the realisation of the duty may be postponed for administrative convenience to the date of removal of goods from the factory. We are of the opinion that even though the taxable event is the manufacture or the production of an exci....