( 1 ) IN this appeal, the Collector of Central Excise and others have challenged the propriety of the Judgment of a learned single Judge of this Court making the Rule NISI obtained by the respondent company Madura Coats Ltd. , absolute.

( 2 ) THE case of the respondent is that it is required by some of its customers, such as Dunlop India Limited, to arrange nylon or rayon yarns supplied by them in parallel rows loosely held together by cotton varns sun plied by the respondent. Such arrangement of rayon or nylon cards is called a tyrecord warpsheet. To make a warpsheet, the respondent first winds the nylon or rayon yarns supplied by its customers into bobbins. The yarns are then twisted in a twisting machine and thereafter used as warps on a loom; the cotton yarns being used at widely spaced intervals as wefts to hold the nylon or rayon yarns in position. A given length of warpsheet will have 99'4% of nylon yarns and 9. 8% of cotton yarns. No manufacturing process involved in making warpsheets and no new commodity known to commerce or industry comes into being when yarns are arranged or assembled to form warpsheets. A warpsheet continues to be known as yarns commerc