1999 (4) TMI 161 - AT - Central Excise

Summary

Issues Involved:
Classification of a product "Plastic Cavity" under sub-heading 3926.90 or Heading 84.80 of CETA, and the availability of Notification No. 217/86 for the product.

Classification Issue Analysis:
The appeals revolve around the classification of the product "Plastic Cavity" manufactured by the Assessee. The Assessee argues that the plastic cavity should be classified under sub-heading 3926.90 of the Central Excise Tariff Act as it is an article made of plastic. On the other hand, the Revenue contends that the product falls under Heading 84.80, which covers moulds for various materials, including mineral materials. The Assessee emphasizes that their product is a plastic mould and not a mould for plastic, thus supporting its classification under sub-heading 3926.90. The Tribunal agrees with the Assessee, noting that the plastic cavity is made of plastic and not specifically designed for mineral materials, leading to its correct classification under sub-heading 3926.90.

Notification No. 217/86 Issue Analysis:
The second issue concerns the applicability of Notification No. 217/86 to the plastic cavity. The Collector (Appeals) initially denied the benefit of the notification, claiming that the product is not an intermediate product in the manufacture of the final product, abrasive stone. However, the Tribunal disagrees, citing precedents that establish a broader interpretation of what constitutes an intermediate product. The Tribunal clarifies that if a product is used in relation to the manufacture of the final product, it qualifies for the exemption under Notification No. 217/86. Relying on previous decisions and the language of the notification, the Tribunal concludes that the plastic cavity is indeed used in the manufacture of the final product, abrasive stones. Consequently, the Tribunal sets aside the orders denying the benefit of the notification, allowing the appeals filed by the Assessee and rejecting those filed by the Revenue.

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