MODI CARPETS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition the petitioners are challenging the validity and levy of excise duty in respect of 'Sliver' which is obtained by them as an in process material in the manufacture of woollen yarn in its factory premises.

(2.) The petitioner-Company manufactures, inter alia, woollen yarn from raw-wool. The writ petition sets out the entire process of manufacture of woollen yarn from raw-wool.

(3.) Briefly stated, according to the petition, the raw-wool purchased from the market is first of all opened in a cleaning machine and loose dirt, grease and vegetable matter is removed. This opened wool is thereafter cleaned and washed. The washed wool is dried and there after the partially dried wool is opened in a machine called the preparatory willow. This machine separates the wool fibres and further removes the dirt and vegetable matter which may have remained in it. Thereafter different types of wool are blended. At this stage, the wool is conveyed to the spinning department in the factory. In the said department humid conditions are maintained as the same are necessary and essential for further processing. The wool is then put on a carding machine. This carding machine consists of cylindrical speed rollers with pins mounted on their surface. Rolling on this machine straightens the fibres and opens the wool. "The web of wool emerging from these rollers is pulled by a drawing head. This reduces the width of the carded web of wool and gives it the appearance of a cylindrical form being a mere collection of loosely held fibres. However, this cylindrical form consists of fibres of varying lengths which have been carded. There is no twist in these fibres. This form of wool, which is still in its fibre form, is described by the petitioner as 'Sliver