COMMISSIONER OF CENTRAL EXCISE Vs. SCAN SYTHESTICS LTD

JUDGEMENT

(1.) This appeal has been filed by the Revenue under Section 35L(b) of the Central Excise Act, 1944 (for short, the Act) against the Final Order No.90/2002-A, dated 27th February, 2002 in Appeal No.E/881/2001-A passed by the Customs, Excise and Gold (Control) Appellate Tribunal wherein and whereunder the Tribunal has reversed the order-in-original of the Commissioner dated 02nd February, 2001 and deciding the issue regarding determination of assessable value against the Revenue in respect of intermediate product, i.e., the textured yarn manufactured and consumed captively by the respondent in the manufacture of final product, i.e., dyed yarn which is sold in the market.

(2.) Briefly stated, the facts of the case are : The respondent-assessee is engaged in the manufacture of textured yarn - grey yarn as well as dyed - falling under Chapter 54 of the first schedule to the Central Excise Tariff Act, 1985.

(3.) As per Notification No.35/95-E, dated 16-3-95, the product dyed yarn was chargeable to NIL rate of duty, if the same was manufactured out of duty paid yarn. Subsequently, Notification No.34/97-E, dated 6-6-97 was issued wherein it was provided that the dyed yarn would be chargeable to Basic Excise Duty (BED) and Additional Excise Duty (AED, if the same was manufactured out of duty paid yarn.