Judgment

SABYASACHI MUKHARJI, J :- This is a statutory appeal under Section 35-L(b) of the Central Excises & Salt Act, 1944, hereinafter called the Act, against the Order dated February 22, 1944 passed by the Customs, Excise &Gold (Control) Appellate Tribunal, hereinafter called the CEGAT.

2. In this appeal we are concerned with the question whether there was exigibility to taxation on the item concerned under the Act. It appears that during the course of investigations made against Swastik Investment Company, Bombay, the Central Excise Officers found that some of the consignments of the material described in the documents as crimpled uncut waste were cleared from M/s. Swadeshi Polytex Ltd., Ghaziabad, during the period from Jan. 74 to Dec. 77 and were purchased by the respondents herein and utilised in the manufacture of the polyester staple fibre. The Collector held that the so-called crimpled uncut waste purchased by the respondents was, in fact, polyester fibre tow and the staple fibre which were commercially two distinct products and the respondents had carried on manufacture of polyester staple fibre from tow and, as such, exigible to duty. The respondents filed an appeal befor