M/S. RAJASTHAN SPG. & WVG. MILLS LTD. vs COMMNR. OF CENTRAL EXCISE, JAIPUR

The Supreme Court addressed the liability of central excise duty on the manufacture of single ply yarn under the Central Excise Tariff Act, 1985. The Court held that the duty is exigible at the stage of manufacture of single ply yarn, rejecting the appellant's claim that duty should be paid only upon clearance of double or multi fold yarn. The Court affirmed the tribunal's reliance on precedents, specifically the cases of Bhilwara Spinners Ltd. and Banswara Syntex Ltd., and declined to refer the matter to a larger bench, establishing that the taxable event is the manufacture of the excisable article.