WINSOME YARNS LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Heard both sides.

(2.) Appellant filed this appeal against the order -in -appeal passed by the Commissioner (Appeals). The appellant is a 100% E.O.U. and are engaged in the manufacture of yarn. Appellant receives semi -finished yarn without payment of duty under CT -3 certificate issued by competent authority and thereafter processes the yarn. The processed yarn was exported. The duty was demanded in the impugned order in respect of the semi -finished yarn received by the appellant on the ground that the process undertaken by the appellant on the semi -finished yarn does not amount to manufacture as per the provision of Section 2(f) of the Central Excise Act.

(3.) Contention of the appellant is that there is no dispute that they were receiving semi -finished yarn without payment of duty under CT -3 certificates issued by the competent authority. Vide Circular No. 314/30/97 -CX., dated 6 -5 -97 Board has clarified that the term 'manufacture' for the purpose of export is wider in meaning than that used in Section 2(f) of the Central Excise Act. Even the process of galvanizing is considered amounting to manufacture in terms of the explanation. The contention is that appellants are doing certain processes on the semi -finished yarn, this fact is not disputed by the Revenue and as the Board Circular the demand is not sustainable.