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Judgment
These appeals are filed by the Revenue with regard to the demand of duty on base yard which is captively used for texturising purpose. It was alleged in the show cause notice that substantial quantity of Nylon yard was being used for the manufacture of textured yarn. However, duty was not paid to the extent of base yarn rendered waste due to conversion of base yard and in the show cause notice duty was demanded. Show cause notice was amended after one year by substituting the word �loss� in place of the word �waste�.
It is not in dispute that on waste no duty is payable and this aspect has been dealt with by the Tribunal in Modipon Ltd. v. C.C.K. Meerut [1999 (114) E.L.T. 359]. Insofar as the present case is concerned, the Tribunal has observed in the impugned order that the authorities are treating �loss� and �waste� as the same i.e. there was �waste� of 6.5% of the base yarn during texturizing. In view thereof, we are of the opinion that the case of the respondent-assessee was squarely covered by the decision in the case of Modipon Ltd. (supra) as mentioned above and the Tribunal rightly allowed the appeal of the respondent-assessee setting aside the order passed by the authorities below.
We find no merit in these appeals which are, accordingly, dismissed.