COLLECTOR OF CENTRAL EXCISE, JAIPUR vs BANSWARE SYNTEX LTD.

The Supreme Court held that excise duty is payable on the single ply yarn at the stage of its manufacture under the Central Excise Act, as it constitutes an excisable item. The Court clarified that the process of doubling or multifolding does not create a new commodity, and thus, the duty cannot be avoided by paying it only at the later stage. The appeal by the appellant was allowed, reversing the Tribunal's decision that had favored the respondent.