Per T. Anjaneyulu : Heard both sides.

2. The revenue is in appeal against an Order dated 21.09.2004 passed by the Commissioner (Appeals), Central Excise, Mumbai-IV.

3. The issue involved in the appeal is classification of goods and payment of duty thereon.

4. The brief facts of the case are that the respondent unit is engaged in the Processing/Manufacture of yarn of various types including multifolded yarn. The same is manufactured by passing two or more than two yarns through water and/or Airjet in machines wherein filaments of input yarns are mingled together with Pressure of Air. Thereafter the same are passed through stabilizing zone (heater) and wound on cops.

5. The disputed goods of the respondent unit were treated as an exempted product by the central excise authorities and was considered to be not a 'texturised yarn' on the basis of various test reports of departmental Dy. Chief Chemist of SASMIRA till October, 2000. However, in October 2000, the excise authorities took samples of above product again and send it to VJTI and SASMIRA for analysis. VJTI, vide its test report of November 2000 concluded that the sample was "texturised yarn". On the basis of this report alone