2002 (6) TMI 57

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ounsel for the applicant as well as learned counsel for the respondent on caveat. 2.This is an application under Section 35H(1) of the Central Excise Act, 1944. The facts leading to this application are that the yarn manufactured by the assessee passes through two stages. In the first instance single yarn is manufactured and by using that single yarn to further process it is converted into doub....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....asis of which duty is leviable. He did not accept the plea of the assessee that since the assessee has already paid duty at doubling stage on the double yarn at a higher valuation, therefore, no duty is now payable on the single yarn. 4.On appeal, the Commissioner (Appeals) held that taking the waste percentage as .35% the demand would be worked out afresh on the quantity of single yarn used fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at the demand of central excise duty should be based on the actual quantity of production and clearance and not on hypothetical quantity by deriving the same on a hypothetical formula. With this conclusion, the Tribunal remanded the case back to the Assessing Authority to decide the case afresh as it was necessary to establish the duty correctly payable on the single yarn actually produced by the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....termediate product, more so, when subsequent/final products is not leviable to duty and the intermediate product has been held excisable and dutiable? (II) The duty on double yarn was, in fact, duty paid on the single yarn with value addition as laid down by the Hon'ble Supreme Court in the case of Sidhartha Tubes Ltd. v. CCE [2000 (115) E.L.T. 32 (S.C.)]. Thus, single yarn contained in the was....