ADITYA MILLS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a statutory appeal against the decision of the Customs Excise and Gold (Control) Appellate Tribunal (for short CEGAT). The appellant Company had filed a Classification List under Rule 173B of the Central Excise Rules stating that they intended to clear PPRF Yarn on which duty had already been paid.

(2.) According to the appellant. the PPRF Yarn consists of two varieties of Yarn on which duty has already been paid namely, two plies of Polyester Spun Yarn - PP and one ply of Rayon Filament Yarn - RE which are doubled together and the resultant yarn is referred to as PPRF Yarn. The aforesaid classification list filed by the appellant was rejected and it was directed to file a fresh classification list showing PPRF yarn under Tariff Item 68 of the Central Excise Rules. The case of the appellant is that since it was not permitted to clear PPRF Yarn without further payment of duty under Tariff Item 68 of the said Rules, on or from 27th April, 1976 they started making clearance on payment of duty on PPRF Yarn under protest.

(3.) Thereafter, in Oct, 1978, the appellant filed refund claim for the period from April to September, 1978 for a sum of Rs. 84,651.77 collected by the revenue as duty on PPRF Yarn under Tariff Item No. 68. The appellant Company, thereafter, received a show cause notice requiring it to show cause as to why the refund claim should not be rejected. The appellant Company filed its reply stating there in that the duty had already been paid on Polyester Spun Yarn, which was manufactured by it in its factory (under Tariff Item 18E of the 1st Schedule of the Central Excises and Salt Act, 1944, (hereinafter called 'the Act') and further that the appellant was purchasing Rayon Filament Yarn, on which duty had already been paid (under Tarrif Item No. 18-II) and that the appellant was only doubling two plies of duty paid Polyester Spun Yarn with one ply of Rayon Filament Yarn and no process of manufacture was carried out and further no new product came into being.