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TMI Blog1985 (9) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Appeal No. 572/82 : Union of India and Others v. Raish Plastics. This appeal has arisen out of S.B. Civil Writ Petition No. 1543/80 [1983 (12) E.L.T. 92 (Raj.)]. The petitioner-respondent manufactures acrylic plastic sheets, flat or round, and plastic bangles, through cylindrical process. While manufacturing the aforesaid articles, the petitioner-respondent uses regenerated monomer manufactured in its own factory out of plastic scraps and also purchases regenerated monomer from the market. The petitioner-respondent has stated in the writ petition that the monomer virgin is purchased by it from Polymer Corporation of Gujarat Ltd., Baroda. The petitioner-respondent has been enjoying exemption from Central Excise Duty and were not required to obtain any licence. The manufacturers of the plastic bangles were enjoying this exemption from September, 1973 when the original Notification No. 38/73-C.E. dated March 1, 1973 was amended by Notification No. 174/73-C.E., dated September 8, 1973, whereby exemption was granted to acrylic sheets, if produced out of monomer. The petitioner-respondent claims its products wholly exempt from payment of the Central Excise Duty. The Superintendent, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions) may be restrained from enforcing the same against them. 4. The writ petition was contested by the appellants. It was stated in the reply that the petitioners-respondents are engaged in the manufacture of A.P. bangles only, but they first manufacture A.P. bangles tubes made of plastic material manufactured out of virgin or regenerated monomer. These A.P. bangles tubes are then cut in the shape of bangles of various thickness according to the requirements of the customers. The defense taken was that the A.P. bangles tubes are articles made of plastic falling under Tariff Item No. 15A(2) of the First Schedule to the Act. In the reply, the respondents stated the details of manufacturing process. It was further stated that the petitioner-respondents cannot claim any exemption under Notification No. 38/73 dated March 1, 1973, as amended by Notification No. 174/73 dated September 6, 1973 and further it was stated that the exemption contained in Notification No. 38/73 as amended, is applicable to A.P. sheets and not to A.P. Bangles tubes and as the petitioner-respondents manufacture A.P. bangles tubes, they are liable to payment of appropriate duty right from 1975. It will be cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or as powder, granules or flakes, or in the form of moulding powders, namely :- Fifty percent ad valorem Condensation, Polycondensation and Polyaddition products, (i) whether or not modified or polymerised, Amino-plasts, Alkyds, Polyamides, Super polymides. Polyesters, Polyallyl esters, Polycarbonates, Polyethers, Polyethylene imines, Polyurethanes, Epoxide resins and Silicones; Polymerisation and co-polymerisation products such as (ii) Polyethylene, Polytetrahaloethylenes, Polyisobutylene, Polystyrene, Polyvinyl chloride, Polyvinyl acetate, Polyvinyl chloroa-cetate and other Polyvinyl derivatives and Coumarone-Indene Resin; and Cellulose acetate (including Cellulose diacetate or (iii) Cellulose triace-tate), Cellulose acetate butyrate and Cellulose Propionate, Cellulose acetate propionate, Ethylcellulose and Benzyl-cellulose, whether plasticised or not, and plasticised Cellulose nitrate. (2) Articles made of plastics, all sorts, including tubes, rods, sheets, foils, stocks, other rectangular or profile shapes, whether laminated or not, and whether rigid or flexible, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21) E.L.T. 633 (S.C.) . Their Lordships considered the question of classification of goods under the Central Excises and Salt Act, 1944. The precise question before their Lordships was whether goods in question, in that case, fell under Item 19 or Item 22 of the First Schedule of the Act. In that connection, R..S. Venkataramiah, J., made the following observation :- "Having regard to the process involved in the manufacture of 'Calikut Special' by the respondent, we are of the view that it is not possible to hold that the character of goods at the intermediate stage of production could be taken into consideration for determining the liability under the Act. The process involved in the instant case after intermediate stage referred to above formed an integral part of the manufacture of the produce in question and the classification of the manufactured product for purposes of excise duty should depend upon its nature and character and its final stage of production unless a contrary intention appears from the statute." (Emphasis added). It follows from the aforesaid decision that the classification of the manufactured products for the purpose of excise duty depends upon its nature an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem No. 15A. Similarly in the present case the petitioners, who are manufacturing acrylic sheets/tubes and plastic bangles out of the polymerisation process, are not liable to excise duty and their products are not covered under Tariff Item 15A(2)." It is, thus, clear that the raw-material for the manufacture of plastic bangles in this case, being monomer, will not attract the applicability of sub-item (2) of the Tariff Item 15A. 12. The upshot of the above discussion is that the petitioner-respondents, who at the relevant time had manufactured acrylic sheets/tubes and plastic bangles out of monomer virgin and regenerated monomer by subjecting them to polymerisation process, are not liable to excise duty and the products therefrom are not covered under Tariff Item No. 15A(2). Thus, the view taken by the learned single Judge is correct, and no case for interference with that is made out. 13. No other point was pressed by the learned Counsel for the appellants for our consideration, in these appeals. 14. The result is that these appeals have no force and are consequently, dismissed. In the circumstances of the case, there will be no order as to costs of these appeals. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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