Excise

Exigibility to excise duty

— Waste — Cotton waste — 100% export-oriented unit manufacturing cotton yarn for export, out of cotton purchased in domestic market — During that process, it obtaining cotton waste as an intermediate product and selling the same in Domestic Tariff Area — Such cotton waste, if dutiable — Although such cotton waste is marketable and even covered by Heading 52.02 introduced in 1995, held, it would not be exigible to duty unless its emergence involves a process of manufacture — Hence, cross contentions of the parties on this point directed to be reconsidered by the Appellate Tribunal in the light of the cases decided by Supreme Court, (2006) 7 SCC 794