9911796707
TMI Blog1992 (9) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 11A of the Central Excises and Salt Act, 1944 and has also ordered for confiscation of seized HDPE sacks valued at Rs. 2,14,940/- under sub-rule 1 of Rule 173-Q of the Central Excise Rules but however, has granted an option of redemption fine of Rs. 10,000/-. As the goods had not been produced at the time of adjudication, the security deposit of Rs. 10,000/- under B-11 bond has been appropriated. A penalty of Rs. 5 lakhs each has been imposed under Rule 173Q(1) of the Central Excise Rules on the company and Shri Naranbhai Narottamdas Patel under Rule 209A of the Central Excise Rules, 1944. 2. The appellants are engaged in the manufacture of HDPE tapes, HDPE fabrics woven on circular looms and HDPE sacks made out of fabrics woven on cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith 173G(2) and 173G and 173Q of Central Excise Rules. They were also called to explain as to why Rs. 2,14,940/- should not be confiscated and duty amount of Rs. 11,54,192.90 P. should not be recovered under Section 11A of the Central Excises and Salt Act, 1944 read with Rule 9(2) of the said Rules and exemption availed by them in respect of HDPE sacks for the year 1977-78, 1978-79 should not be disallowed. The department had proceeded to classify the HDPE tapes as falling under sub-heading 5406.90 of CET 1985 and HDPE fabrics woven on circular looms falling under sub-heading 5408.00 falling under Chapter 54 and HDPE sacks made out of fabrics woven on circular looms falling under sub-heading 6301.00 of Chapter 63 of the Schedule to the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ruling of the M.P. High Court cited by them. 5. We have heard Shri R.S. Dinkar, learned advocate for the appellants and Shri J.N. Nair, learned DR for the Revenue. The learned advocate has made detailed arguments on all aspects of the matter and in the conclusion, reiterated that the ruling of the Hon'ble M.P. High Court in the case of Raj Packwell Ltd. is fully applicable to the facts of the case and the Hon'ble High Court had taken into consideration all the pleas which had been raised by the Revenue. Therefore, the learned Collector should have followed the ratio and by not following the same, the learned Collector has in fact committed a serious error. Shri J.N. Nair, learned DR reiterated the findings given by the learned Collector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find that the Hon'ble Madhya Pradesh High Court has considered all the aspects of the matter and as indicated in the contentions placed by the Revenue, has upheld the classification under Chapter 39, as noted by us (supra). The ratio of the ruling rendered in the case of Shri Radhey Industries by the Tribunal has been gone into by the Hon'ble High Court and has held that even as per this ruling HDPE tape is a plastic material and the tape was coming under TI 15A (2) and not under item 18. The Hon'ble High Court has observed that in view of the aforesaid decisions given on facts by the Tribunal and as confirmed by the Supreme Court and accepted by the Department, there is no dispute that the HDPE sacks are articles of plastics and not text ..... X X X X Extracts X X X X X X X X Extracts X X X X
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