2000 (3) TMI 331 - AT - Central Excise

Summary

Issues:
Excisability of punched dobby cards of plastics and eligibility for benefit of Notifications.

Analysis:
The issue in this case pertains to the excisability of punched dobby cards of plastics and the eligibility for the benefit of Notifications. The Revenue argues that punched dobby cards of plastic are excisable goods under CET Sub-heading 3926.90, not eligible for certain Notifications. The assessees contend that punching duty paid plain plastic dobby cards does not constitute manufacturing, or if considered excisable goods, they should receive the benefit of the Notifications.

The Tribunal referred to previous judgments like Shri Dinesh Mills Ltd. v. Collector of Central Excise and Garden Silk Mills Ltd. v. Collector of Central Excise, where it was held that punching plastic/paper sheets to create dobby cards amounts to manufacturing a distinct commercial commodity. Another case, Hindustan Spinning and Weaving Mills v. Collector of Central Excise, established that punched dobby cards are marketable. Based on these precedents, the Tribunal rejected the appellants' argument against the excisability of punched plastic dobby cards.

Regarding the alternate plea, the Tribunal acknowledged that the benefit of certain Notifications was previously denied due to the origin of the materials used. However, the Tribunal noted a Board's Circular that clarified the issue. Referring to the case of Collector of Central Excise, Bhubaneshwar v. Eleconmet Ltd., the Tribunal emphasized that the Revenue must verify that the plastic films used in manufacturing dobby cards were made from duty-paid primary plastic materials. The matter was remanded for verification by the Assistant Commissioner to ensure compliance with the Circular and extend the benefit of the Notifications accordingly.

In conclusion, the Tribunal held that the body punched dobby cards of plastic are excisable goods classified under CET Sub-heading 3926.90. The eligibility for the benefit of Notifications was remanded to the Assistant Commissioner for verification based on the guidelines provided, ensuring compliance with duty payment and credit availing rules. The appeal was disposed of accordingly.