1988 (7) TMI 177 - AT - Central Excise

Summary

Issues:
Levy of duty at the rate of 8% between 1-3-1982 and exemption period, Interpretation of Tariff Item 15A(2) post-restructuring, Applicability of Notification No. 52/82, Benefit under Notifications No. 50/82 and 51/82.

Analysis:
The appeal concerned the duty levy on goods at 8% between 1-3-1982 and a subsequent exemption period. The lower authorities held that duty was chargeable during this period. The appellants argued that their goods fell outside Tariff Item 15A(2) post-restructuring by the Finance Bill, 1982. The Collector (Appeals) found the goods liable for duty under Notification No. 52/82 until exempted by Notification No. 149/82. The Tribunal upheld the duty levy under Item 15A(2) for non-specified plastic articles during the relevant period.

The Tribunal noted that the goods were exempted until 1-3-1982 when the duty rate was fixed at 8%. The appellants contended that their goods were not covered by specified items under the restructured Tariff Item 15A(2) post-Finance Bill, 1982. They argued that their goods should be assessed under Tariff Item 68. However, the Tribunal held that the restructured item only took effect after the Finance Bill became an Act, and until then, the goods were assessable under the pre-restructured Item 15A(2).

The appellants later raised a plea for benefits under Notifications No. 50/82 and 51/82, which was not addressed by the lower authorities. The Tribunal acknowledged this omission and remanded the matter to the Collector (Appeals) for consideration of this plea, allowing the appellants an opportunity to provide evidence. The Tribunal found the impugned order lacking in addressing this plea and set it aside for further review.

In conclusion, the Tribunal upheld the duty levy under Item 15A(2) for the relevant period, rejected the appellants' argument of assessment under Tariff Item 68, and remanded the case for consideration of benefits under Notifications No. 50/82 and 51/82. The appeal was allowed for further assessment on the additional plea raised by the appellants.