1990 (10) TMI 195 - AT - Central Excise

Summary

Issues:
Classification of composite products under central excise tariff, entitlement to duty exemption under specific notifications.

Analysis:
The appellants, manufacturers of plastic articles, sought classification under Sub-heading 3922.90 and exemption under Notification No. 132/86 and 172/86. The Assistant Collector alleged the products were not exclusively of plastics. The Collector upheld the classification and duty imposition. The appellants argued for exemption based on Circular No. 16/88 and Trade Notices. The Collector held that approval could be reopened if based on a mistake of law and that classification should be prospective. The appellants' products contained 51-57% plastic material. The appellants relied on Circulars and Trade Notices to support their claim for exemption.

The main issue was whether the impugned goods were entitled to exemption under Notification No. 132/86. The notification specified conditions for exemption for articles of plastics under heading 3922.90. The Trade Notice clarified the applicability of the notification to goods where plastics predominate. The Circular from the Central Board of Excise & Customs also supported the treatment of composite articles of plastics as articles of plastic for exemption purposes. The Collector's decision was based on Rule 33 for interpreting the tariff on goods with a mixture of materials. The appellants' products contained a significant amount of plastic material, justifying classification as articles of plastics. The judgment highlighted the importance of not disregarding interpretations given by relevant authorities in circulars and Trade Notices.

The Tribunal held that the goods were eligible for exemption under the specified notifications until the specified dates. The judgment emphasized that if an article is considered an article of plastics for tariff classification, it should also be considered as such for exemption purposes under the notification. The decision aligned with the Board's circular and allowed the appeal, granting the appellants the benefit of exemption under the relevant notifications.