CCE Vs. NALANDA SPINNERS

JUDGEMENT

(1.) The above captioned appeals have been preferred by the Revenue for questioning the validity of the impugned orders -in -appeal of the Commissioner (Appeals) vide which he had reversed the orders -in -original of the adjudicating authority and dropped the duty demands against the respondents.

(2.) The respondents are engaged in the manufacture of yarn on hollow spindles consisting of wool, animal hair and man -made fibres. The core of the yarn primarily consists of polyester filament yarn/man -made yarn. The yarn so manufactured is subjected by them to the process of raising on the raising machines.

(3.) The issue involved in the present appeals relates to the classification of the above said yarn. According to the Department, the yarn is classifiable under Chapter Sub -heading 5606.00 of the CETA, while the stand taken up by the respondents is that it is classifiable under Chapter 5107 of the CETA. The adjudicating authority confirmed the duty demand by holding classification under 5606 of the CETA, by denying the benefit of Notification 1/93 dated 28.2.1993. The Commissioner (Appeals) had reversed that order by following the earlier order -in -appeal No. 279/CE/CHD -1/02 dated 26.7.2002 passed in the respondents' own case.