1997 (9) TMI 287 - AT - Central Excise

Summary

Issues:
1. Interpretation of Chapter Note 6 in conjunction with Chapter Note 3 regarding duty payment.
2. Prospective or retrospective application of the amendment to Chapter Note 6.
3. Necessity to refer the matter to a Larger Bench for clarification.

Analysis:
1. The case involves the Department's appeal against a Commissioner's order regarding duty payment by a party engaged in manufacturing plastics. The party was found clearing goods without duty payment, leading to a show cause notice. The Collector adjudicated the case, considering Chapter Note 6 in conjunction with Chapter Note 3. The Department appealed, arguing that an amendment to Chapter Note 6 made it applicable before 1-3-1988. The Tribunal was referred to a previous judgment for clarification.

2. The issue of prospective or retrospective application of the amendment to Chapter Note 6 was raised. A similar matter involving this issue was noted in another case pending before the Tribunal. The Tribunal was required to determine if the amendment was clarificatory and applicable before a specific date. The disagreement on this issue led to a proposal to refer the matter to a Larger Bench for resolution.

3. A dissenting opinion was presented by a Member, stating that the conversion of primary forms of plastic amounted to manufacture based on previous Tribunal orders. The dissenting Member believed the appeal should be rejected without the need for a Larger Bench. However, due to the difference of opinion, the matter was referred to the President for consideration. The necessity of referring the matter to a Larger Bench was debated, leading to a majority opinion in favor of the referral for clarification on the application of the amendment to Chapter Note 6.

This comprehensive analysis outlines the key issues, arguments, and decisions made in the legal judgment, emphasizing the interpretation of Chapter Note 6, the application of the amendment, and the necessity of referring the matter to a Larger Bench for resolution.