JUDGMENT

These are two appeals by the Union of India from the order of the Central Excise and Gold (Control) Appellate Tribunal in the case of Rajasthan Spinning & Weaving Mills Limited.

2. The respondents manufacture yarn falling under items 18, 18B etc. of the Central Excise Tariff as it stood at the relevant time. They manufactured three types of yarns containing polyester, viscose, and acrylic ,fibres. In one of the appeals, the yarn manufactured by the assessee consisted of polyester, viscose and acrylic fibre in the proportion of 24: 26: 50. In the other appeal, there were two types of yarns - one in which the above fabrics were mixed in the ratio of 24: 26: 50 and the other in which the fabrics were mixed in the ratio of 45: 5: 50. There was another category of yarn in which the polyester and acrylic fibre were mixed in equal proportions but with that we are not concerned in the present appeals.

3. Two questions arose for the consideration of the Tribunal. The first was whether the composite yarn manufactured by the assessee could be treated as a separate item of goods on which excise duty could be levied. This question has been answered in favour of the Revenue and that concl