BOMBAY DYEING AND MFG. CO. LTD. Vs. CCE

JUDGEMENT

(1.) The appellant are engaged in the manufacture of various kinds of yarns, fabrics and made up articles etc. They were issued a show cause notice alleging that they are also manufacturing Viscose tops of artificial staples fibres, which they have consumed captively. Such Viscose tops were held to be classifiable under heading 55.02 and duty of Rs. 21,356.71 and Rs. 31,721.87 was confirmed against them.

(2.) During the adjudication, the appellant took a stand that no such tops where being manufactured by them and they were manufacturing yarn directly from the Sliver. They also submitted that such slivers are not marketable and hence not excisable.

(3.) The Commissioner in his impugned order held that slivers came into existence as a distinct commodity at the intermediate stage in the manufacture of yarn and were distinct from the raw material. These were having capability of being bought and sold in this condition, in the same manner as tops were capable of being bought and sold. Central Excise Tariff as also HSN recognised Sliver as a distinct commodity. As such, he held that the Slivers were fully finished goods and were classified under heading 55.02. With his above findings, Commissioner confirmed the demand of duty. Hence the present appeal.