Circular No. 158/69/95-CX dated 21/11/95

Subject: Not. No. 35/95 dt. 16.3.95 as amended by Not. No. 84/95 dt 18.5.% Dutiability of texturised and dyed yarn made from duty paid single yarn.

It has been brought to the notice of the Board that units having facilities for twisting/texturising the yarn and then dying/printing/bleaching/mer-cerising are being denied the benefit of exemption available under Not. No. 35/95-CE dt. 16.3.95 after the addition of proviso vide Not. No. 84/95-CE dt. 18.5.95 to the effect that this exemption will not be available to the clearances of yarn from a factory having facilities (including plant and equipment) producing single yarn. The field formations are reportedly interpreting the said amendment to Not. 35/95 dt. 16.3.95 to place such twisting/texturising units on the same footing as spinners of single yarn. Based on such an interpretation, some rariges have even reportedly issued show cause notices to the independent texturizers.

2. The matter has been examined, the Board is of the view that a unit merely having the facilities of twisting/texturing the yarn cannot be»said to be having a factory having facilities (including plant & equipment) for producing single yarn. Thus, the clearances of a single yarn purchased from the market if twisted/texturised in the same unit where it is further dyed, printed, bleached or mercerised will not be excluded from the purview of Notfn. No. 35/95-CE after its amendment vide Notfn. No.84/95-CE dated 18.5.95.

Sd/-
(S.C.Bhatia)
Under Secretary to the Govt. of India

F.No. 55/11/95-CX.I

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