1998 (10) TMI 158

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..... plastic articles and were availing the exemption under Notification No. 53/88-C.E., dated 18th March, 1988. Since all articles manufactured by the appellants were of plastic and exempt from duty they were not required to take out L-4 licence and follow the procedure prescribed in the Central Excise Rules. 4. M/s Sandvik Asia Ltd. purchased wrenches called Allen Keys from M/s. Kohinoor Engineers, Pune who were the authorised dealers. The duty on these wrenches which are high tensile screw drivers was paid under sub- heading No. 8204.00. 5. These duty paid wrenches were sent to the appellants who fixed a plastic moulding to facilitate easier handling. During the process of this, HDEP moulding, the trade mark of M/s Sandvik Asia Ltd. was a .....

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..... essee has cleared from the factory are the keys and not merely plastic grips. The product which is sent by the suppliers as per invoices is classifiable as wrench under C.H. 82.04 and the product which is cleared by the assessee is a tool holder classifiable under C.H. 82.07. In view of this the Notification No. 53/88-C.E., dated 1-3-1988 referred by the assessee is not applicable to him. The trade notices referred to by the assessee are applicable to the plastic products only. Whereas what the assessee is manufacturing are Allen Keys, hence trade notices are not applicable to him. 11. We have considered the above submissions. We observe that the whole case is required to be reconsidered by the authorities below. First and foremost it is .....

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..... what basis it has been mentioned by the Additional Collector that the assessee is not merely manufacturing plastic grip and has cleared from its factory the `keys in the nature of `tool holders . It is necessary to indicate the evidence in view of the appellants assertion that all articles manufactured by them are of plastic. In other words, both the parties are required to substantiate their respective contentions and the Department is required to show that the assessee is manufacturing and marketing the Allen Keys (as a whole) which were meant for being supplied with milling cutters and were not articles in the nature of general use screw drivers. Since the Addl. Collector has recorded his findings without indicating clearly the basis t .....

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