1987 (2) TMI 406 - AT - Central Excise

Issues:
1. Interpretation of amendments in tariff item No. 27(f)-CET and Section 2(f) of the Central Excises and Salt Act, 1944.
2. Determination of duty liability on unprinted aluminum collapsible tubes post printing and lacquering.
3. Analysis of the legality of duty recovery based on the schedule of goods and date of manufacture.
4. Clarification on the nature of the 1980 amendment and its impact on duty imposition.
5. Assessment of duty payment requirements for printed and lacquered containers.
6. Consideration of the principle of "once duty paid always duty paid" in the context of printed containers.

Analysis:
1. The judgment revolves around the amendments made in tariff item No. 27(f)-CET and Section 2(f) of the Central Excises and Salt Act, 1944, which included printing and lacquering of containers in the definition of manufacturing. The dispute arose regarding the duty liability on unprinted aluminum collapsible tubes after printing and lacquering, based on the timing of budget changes made on 18-6-1980. The appellant argued that duty should not be imposed again on already duty-paid tubes post printing, citing the judgment in Kirloskar Brothers v. Union of India.

2. The appellant contended that since the item for printed/lacquered containers was not in the schedule when they were manufactured, duty recovery post printing and lacquering is not lawful. The Appellate Collector acknowledged that the goods would not be dutiable if no further processes were carried out. However, the department argued that the 1980 amendment was clarificatory and quoted various judgments to support the imposition of duty even before the said date.

3. The crux of the matter lies in the budget placing printed and lacquered containers under the same heading as unprinted plain containers, subjecting them to the same duty rate from 19-6-1980. The judgment emphasizes that the aim of the amendment was to levy the same duty on all types of containers, whether plain or printed, without granting immunity based on printing status. It rejects the notion of imposing duty twice on the same container, highlighting the need for separate headings for different types of containers.

4. The judgment emphasizes that once duty is paid on an item within the same heading, it cannot be levied again unless there is a distinct heading or sub-heading for the specific type of item. It criticizes the revenue's decision to impose duty again on printed containers that were already duty-paid as plain containers. The principle of "once duty paid always duty paid" is highlighted as imperative for the industry, advocating for clarity and fairness in duty assessment.

5. The argument for a trade-off in duty paid on plain containers by reducing duty on printed containers is acknowledged, but the lack of automatic credit for duty paid on plain containers raises concerns. The judgment suggests that corrective measures should be transparent and timely to mitigate the impact on manufacturers. It underscores the importance of ensuring that duty assessments are consistent and fair to prevent undue financial burden on businesses.

6. Ultimately, the judgment sets aside the orders of the Appellate Collector and the Assistant Collector, directing that printed containers should be assessed free of duty. It emphasizes the need for clarity in duty imposition, adherence to legal principles, and avoidance of double taxation on the same item within the same heading.

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