COLLECTOR OF CENTRAL EXCISE, AHMEDABADETC. ETC. vs ASHOKA MILLS LTD. ETC. ETC.

The Supreme Court upheld the decision of the Customs, Excise & Gold Control Appellate Tribunal, affirming that yarn produced between 17.3.72 and 23.7.72 and cleared for captive consumption is subject to the duty rate specified under Notification No. 62/72-CE dated 17.3.72. The Court clarified that excise duty on yarn is levied at the point of production and clearance, and the notification does not shift the duty from yarn to the fabric. Consequently, the appeals by the department were dismissed, and a refund was directed to the appellants.