1990 (7) TMI 225 - AT - Central Excise

Summary

Issues:
1. Classification and exemption eligibility of 'Model Plastic Cards' under Notification No. 68/71.
2. Refund claim eligibility for duty paid under protest for the period from 1-1-1983 to 30-6-1983 under Notification No. 182/82.

Detailed Analysis:
1. The judgment dealt with two appeals concerning the same appellant. In Appeal No. 2309/86-C, the issue was whether 'Model Plastic Cards' manufactured by the appellants, falling under Tariff item 15A(2) of CET, were entitled to exemption under Notification No. 68/71. The Collector had rejected the exemption claim stating that the products were not directly made from artificial resin. The appellant argued that the products were made from rigid plastic sheets, which were made from artificial resin, thus qualifying for the exemption. The Tribunal agreed, citing a precedent and allowed the appeal.

2. In Appeal No. 2625/86-C, the question was the refund eligibility of duty paid under protest for the period from 1-1-1983 to 30-6-1983. The refund was denied based on the restructuring of Tariff Item 15A. However, the Tribunal found that the appellants were entitled to claim exemption under Notification No. 182/82, similar to the earlier notification. The matter was remanded to the Assistant Collector to consider the refund, including the limitation aspect, as it was not addressed previously.

The Tribunal thoroughly analyzed the provisions of the notifications, emphasizing that the products were made from intermediate products arising from artificial resins, making them eligible for the exemptions. The judgment highlighted the importance of the direct link between the raw materials and the final products in determining exemption eligibility. The Tribunal's decision in both appeals favored the appellants, allowing their claims for exemption and refund, respectively.