1995 (7) TMI 156 - AT - Central Excise

Summary

Issues Involved:
1. Eligibility of 'Paper based Decorative Laminated Sheets' for the benefit of Notification No. 135/89.
2. Eligibility of 'Paper based Decorative Laminated Sheets' for the benefit of Notification No. 49/87.

Detailed Analysis:

Issue 1: Eligibility of 'Paper based Decorative Laminated Sheets' for the benefit of Notification No. 135/89
The appellants contended that their product is not impregnated with plastics but with a combination of paper and chemicals such as Phenol Formaldehyde Solution and Melamine Formaldehyde solution. They argued that the chemical solutions used are not resins and polymerization occurs only at a later stage under heat and pressure, thus the product should not fall within the excluded category of the notification.

The Tribunal, however, noted that the manufacturing process involves passing paper through a resin bath, impregnating it with resin, and then compressing it under heat and pressure. This process results in the final product being impregnated with plastics. The Tribunal referred to Note 1 to Chapter 39, defining plastics, and concluded that the appellants' product is impregnated with plastics, thus falling within the exclusion category of Notification No. 135/89.

The Tribunal also considered the argument that the chemical solutions are not "goods" within the meaning of excise law but rejected it, stating that the key test is whether the final product is impregnated with plastics. The Tribunal held that the product is impregnated with plastics, referencing the manufacturing process and previous Tribunal decisions.

The Tribunal concluded that the paper-based decorative laminated sheets are not eligible for the benefit of Notification No. 135/89 as they fall within the excluded category.

Issue 2: Eligibility of 'Paper based Decorative Laminated Sheets' for the benefit of Notification No. 49/87
The appellants argued that their product is a type of converted paper or paper board, thus eligible for total exemption from duty under Notification No. 49/87. They contended that even if the product is considered impregnated with plastics, the benefit of the notification should be available until 19-3-1990, as the exclusion of such products from the notification's scope occurred only with the issue of Notification No. 45/90 on 20th March 1990.

The Tribunal agreed with this contention, noting that the benefit of Notification No. 49/87 is available to the appellants' product for the period up to 19th March 1990. The Tribunal referenced previous decisions extending the benefit of similar notifications to products treated as converted types of paper/paper board.

The Tribunal held that the paper-based decorative laminated sheets are eligible for the benefit of Notification No. 49/87 up to 19-3-1990, but not beyond that date due to the exclusion introduced by Notification No. 45/90.

Conclusion:
The Tribunal concluded that the paper-based decorative laminated sheets are not eligible for the benefit of Notification No. 135/89 due to being impregnated with plastics. However, they are eligible for the benefit of Notification No. 49/87 up to 19-3-1990. The appeals were disposed of accordingly.