It has been brought to the notice of the Board that units having facilities for twisting/ texturising the yarn and then dying/ printing/ bleaching/ mercerising are being denied the benefit of exemption will not be available under Not. No. 35/95-CE dt. 16.3.95 after the addition of proviso vide Notifn. No. 84/95-CE dt.18.5.95 to the effect that this exemption will not be available to the clearances of yarn from a factory having facilities (including plant and equipment) producing single yarn. The filed formations are reportedly interpreting the said amendment to Not. 35/95 dt. 16.3.95 to place such twisting/ texturising units on the same footing as spinners of single yarn. Based on such an interpretation, some ranges have even reportedly issued show cause notices to the independent texturizers.

2.     The Matter has been examined, the Board is of the view that a unit merely having the facilities of twisting/ texturing the yarn cannot be said to be having a factory having facilities (including plant & equipment) for producing single yarn. Thus, the clearances of a single yarn purchased from the market if twisted/ texturised in the same unit where it is further dyed, printed, bleached or mercerised will not be excluded from the purview of Notifn. No. 35/ 95-CE after its amendment vide Notifn. No. 84/95-CE dated 18.5.95.