Customs, Excise and Gold Tribunal - Mumbai
The Khatau Makanji Spinning & Weaving ... vs Commissioner Of Central Excise, ... on 6 June, 2001
ORDER GN Srinivasan, Member (J)
1. The issue involved in these two appeals is whether duty can be imposed on the cotton yarn which was warped, beamed and reeled for the period commencing on 1.3.94 ending with 22.3.394.
2. In these two cases appellant's three composite textile mills were manufacturing cotton yarn. Out of the cotton yarn manufactured they captively utilised the same in the manufacture of fabrics by paying the duty at spindle stage. It undergoes various process like warping, windings, beaming and reeling which were exempted processes under Notification No. 46/86. This was amended by means of Notification No. 30/94 dt. 1.3.94. As a result of this duty was levied on warping winding, beaming and reeling etc. The show cause notice has been issued demanding duty resulting in imposition of duty. The appellants have brought to out notice exemption issued under section 11C of the Central Excise Act, 1944, by Notification No. 35/96-C.E. (N.T.) dt. 5.11.96. In view of the above, we set aside the impugned orders and remit the duty. Appeals stand allowed.
(Pronounced in Court)