SUNCITY THREADS LTD. Vs. C.C.E.

JUDGEMENT

(1.) Appellants filed this appeal against the adjudication order passed by the Commissioner of Central Excise, whereby the demand was confirmed and penalty was imposed on the ground that the appellants were not entitled for the benefit of exemption notification.

(2.) Appellants were purchasing doubled or multifold yarn falling under chapter 55 of the Central Excise Tariff on payment of duty. Such yarn was either in hank form or on cone. Yarn in hank form was rewinded to come through winding machines and thereafter reeled into reel -tube and were packed and marketed.

(3.) The contention of the appellants is that this process does not amount to manufacture. The contention of the appellants is also that they were not engaged in doubled of multifold or single yarn and the facility for doubled or multifold yarn is also not available in their factory. The appellants relied upon the decision of the Tribunal in the case of C.C.E. v. M/s . Anand Threads (Final Order No. 1/2003 -B dated 27.12.2002).