Hada Textiles Industries Ltd. Vs. Cce

Hada Textiles Industries Ltd. vs Cce

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Calcutta Decided Feb 19, 2003

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Citation: sooperkanoon.com/30085
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Calcutta
Judge: A Wadhwa, S T C.
Decided On: Feb 19, 2003
Subject: Excise

Case Summary

AI-generated summary - not the official court judgment text.

Excise

Key legal issue: Excise

Parties & Advocates

Appellant / Petitioner

Hada Textiles Industries Ltd.

Respondent

Cce

Legal References

Reported In: (2003)(109)LC222Tri(Kol.)kata

Excerpt

1. the appellants were manufacturing single ply cotton yarn which they were consuming captively for the manufacture of double ply cotton yarn.the said double ply cotton yarn was being cleared by them on payment of duty. the present demand of duty of rs. 66,292/- has been confirmed against them on the ground that no duty was paid by them on the single ply cotton yarn.2. shri b.n. chattopadhyay, id. consultant submits that the doubling of yarn does not amount to manufacture and as such they were required to pay duty only at one stage. inasmuch as they were paying duty on the double ply cotton yarn, there was no liability upon them to pay the duty on the single ply stage. he draws our attention to the tribunal is decision in the case of poddar products ltd. (order no. a-740/cal/97 dt. 24.6.1997) wherein in identical facts and circumstances the appeal was allowed.3. we have also heard shri t.k. kar, id. sdr. para 6 of the decision in the case of poddar products ltd. is reproduced below: 6. similar issue came up before the tribunal in the case of baripara spilling mills wherein the tribunal held that intermediary process merely preparatory to clearance of yarn in hank form and no new product emerging at intermediary stage and no end process goods cleared or removed for consumption or manufacture of any other commodity other than cotton yarn, then no duty shall be leviable at intermediate stage. we note that for arriving at this decision the tribunal examined the implication of section 2(d) and 2(f) of the central excises and salt act, 1944. we also note that in the case of jaipur poly spin limited, this tribunal held that doubling, twisting or multifolding of single ply yarn does not amount to manufacture. all these definitions and findings of the tribunal are to be viewed in the context that a note comparable to note 1 in chapter 52 already existed against section 2(f) of the central excises and salt act, 1944. following the ratio of the judgements of the tribunal in.....

Full Judgment

1. The appellants were manufacturing single ply cotton yarn which they were consuming captively for the manufacture of double ply cotton yarn.

The said double ply cotton yarn was being cleared by them on payment of duty. The present demand of duty of Rs. 66,292/- has been confirmed against them on the ground that no duty was paid by them on the single ply cotton yarn.

2. Shri B.N. Chattopadhyay, Id. consultant submits that the doubling of yarn does not amount to manufacture and as such they were required to pay duty only at one stage. Inasmuch as they were paying duty on the double ply cotton yarn, there was no liability upon them to pay the duty on the single ply stage. He draws our attention to the Tribunal is decision in the case of Poddar Products Ltd. (order No. A-740/CAL/97 dt. 24.6.1997) wherein in identical facts and circumstances the appeal was allowed.

3. We have also heard Shri T.K. Kar, Id. SDR. Para 6 of the decision in the case of Poddar Products Ltd. is reproduced below: 6. Similar issue came up before the Tribunal in the case of Baripara Spilling Mills wherein the Tribunal held that intermediary process merely preparatory to clearance of yarn in hank form and no new product emerging at intermediary stage and no end process goods cleared or removed for consumption or manufacture of any other commodity other than cotton yarn, then no duty shall be leviable at intermediate stage. We note that for arriving at this decision the Tribunal examined the implication of Section 2(d) and 2(f) of the Central Excises and Salt Act, 1944. We also note that in the case of Jaipur Poly Spin Limited, this Tribunal held that doubling, twisting or multifolding of single ply yarn does not amount to manufacture.

All these definitions and findings of the Tribunal are to be viewed in the context that a note comparable to Note 1 in Chapter 52 already existed against Section 2(f) of the Central Excises and Salt Act, 1944. Following the ratio of the judgements of the Tribunal in the cases cited above and having regard to the fact that the appellants were not clearing any quantity of single ply cotton yarn, we hold that the duty in the instant case shall be payable only at the double ply yarn stage. In this view of the matter, we set aside the impugned order and allow the appeal. Consequential relief, if any, shall be admissible to the appellant in accordance with law.

4. We find that the ratio of the decision is squarely applicable to the facts of the instant case. As such following the same we set aside the impugned order and allow the appeal with consequential relief to the appellants.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Calc... Same Parties Hada Textiles Industries Ltd. vs Cce Same Subject Excise Same Judge A Wadhwa, S T C.