THREADS (INDIA) LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The issue involved in this appeal, filed by M/s. Threads (India) Ltd. is whether the impugned product manufactured by them is sewing thread.

(2.) Shri R.M. Sahai, learned Consultant, submitted that the Appellants manufacture sewing thread falling under Headings 54.02 and 55.04 of the Schedule to the Central Excise Tariff Act; that they claimed exemption in respect of doubled or multifold including cabled yarn put up on supports exceeding 1000 gms. in weight under Notification No. 26/94 -C.E., dated 1 -3 -94 as amended by Notification No. 90/94; that the Asstt. Commissioner denied the exemption and confirmed the demand of duty; that on appeal the Commissioner (Appeals) rejected their appeal on the ground that the Appellants had increased the weight of the item by few grams over and above 1000 gms. whereas the other characteristics mentioned in Note 3 to Section XI of the Central Excise Tariff Act are satisfied; that according to the Commissioner (Appeals) the product in question was sewing thread, and therefore, the benefit of Notification was denied. The learned Consultant, further, submitted that as per Note 3 to Section XI 'sewing thread' means Multiple (folded) or cabled yarn : -

(3.) The learned Consultant contended that once the impugned goods were being bound on support weighing more than 1000 grams mere fact that the impugned product satisfy the condition No. (b) and (c) mentioned in Note 3 have no relevancy; that all the three conditions are to be satisfied before any product can be classified as sewing thread under Heading Nos. 52.04, 54.01 and 55.08.