NAHAR FIBRES LTD. Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) The issue in these two appeals is the same, therefore, they are taken up together and are being disposed of by this common order.

(2.) The issue involved in the case is whether duty is to be collected at the stage of removal of the yarn from the factory.

(3.) The facts of the cases are that the appellants are engaged in the manufacture of single yarn, multi -folded yarn and doubled yarn. On scrutiny of the records of the assessees, the Departmental Authorities found that the appellants were manufacturing single yarn and were further processing the single yarn into doubled/multi -folded yarn. The Department, therefore alleged that since only doubled/multi -folded yarn was leared from factory, therefore, duty should have been paid on the price at which the Yarn left the factory since duty on the Yarn was advalorem. The assessees were not selling the yarn at the factorygate but were sending it to their depots on consignment basis without paying duty as their contention was that duty, was already paid on the basis of value determined under Rule 6 of Central Excise Valuation Rules as single yarn was being further processed into doubled/multifolded yarn. SCNs were therefore, issued to the assessees asking them to explain as to why differential duty should not be demanded from them. The Asstt. Commissioner after examining various aspects including the explanation under Rule 9 and 49 confirmed the demand. The appellants filed appeals before the Commissioner (Appeals). Id. Commissioner(Appeals) also upheld the orders of the Asstt. Commissioner and hence the appeals before us.