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2004 (7) TMI 382 - AT - Central Excise
Issues: Application for waiver of pre-deposit of duty under Notification 14/92-C.E. for printed/unprinted laminated plastic films manufactured by the applicants.
Analysis: 1. The issue in this case revolves around the application for waiver of pre-deposit of duty amounting to Rs. 7,66,730 confirmed on printed/unprinted laminated plastic films manufactured by the appellants and cleared between November 1993 to March 1994. The dispute arose due to the contention that the benefit of exemption under Notification 14/92-C.E. was not available as the inputs, bare duty paid plastic film, were classified under Heading 39.20, while the Notification required the final product to be made from plastic materials falling under Chapters 39.01 to 39.15. This issue originated from the Order of Commissioner (Appeals). 2. The Tribunal, comprising Ms. Jyoti Balasundaram and Shri Moheb Ali M., considered both sides' arguments. The appellants presented a strong prima facie case for waiver by referring to the Board's Circulars dated 25-6-1987 and 22-8-90. These Circulars clarified that if duty paid bare films used in manufacturing lacquered/laminated/metallised plastic films were made from duty-paid plastic materials falling under Heading Nos. 39.01 to 39.15, then the final products would also be considered as manufactured from such materials. Consequently, the lacquered/laminated/metallised films would be eligible for concessional duty rates under Notification Nos. 259/86 and 53/88. 3. The appellants contended that the plastic material used in manufacturing their plastic films fell within the scope of Chapter Headings 39.01 to 39.15. Considering the Board's Circular and the prima facie case made by the appellants, the Tribunal decided to dispense with the requirement of pre-deposit of duty and penalty. Additionally, the Tribunal stayed the recovery of the duty and penalty pending the appeal, thereby providing relief to the appellants based on the interpretation of relevant legal provisions and circulars.
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