9911796707
TMI Blog1990 (12) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioner purchases the polyester films from the market or imports the same after paying the necessary Excise duty or import duty. 2. It is the say of the petitioner that "Stamping Foil" on which the respondents want to recover Excise duty on the basis of Tariff Item 68 is nothing but a polyester film which is metallized and lacquered and is given some colour with suitable dyes. After purchase of the polyester films they are fed into high vacuum metallizing machine where thin coating of aluminium is deposited on the films by condensation of aluminium vapour. Thereafter the said metallized roll or film is further given coating of chemicals which is called lacquering for the purposes of protection against washing, rubbing, etc. Whenever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .C. based which are processed by the petitioner do not attract further Excise duty under Item 15A(2) of the First Schedule of the Central Excises and Salt Act, 1944 as it stood on that day. The said statement is produced at Annexure "A" to this petition. 3. In 1975 the Superintendent, Central Excise, Baroda, wrote a letter to the petitioner seeking information with regard to decorative articles produced by the petitioner which may come under the purview of the Tariff Item 68. The relevant part of the said letter is as under :- "The following items has been mentioned in your classification list are exempted. 'Metallised and/or lacquered PVC/Cellulose Acetate/Polyester film, Stamping foil.' The item decorative articles etc. comes under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the amount of erroneous refund of duty as on detailed inquiry of the party's product it is found that the party is manufacturing "stamping foil" after colourising the metallized films with imported dyes in different colours according to requirements and cutting it into required size and designs. It is also mentioned that the end use of stamping foil and its characteristics are different from the metallized and lacquered film sheet. The stamping foil is liable to Central Excise duty under Tariff Item 68. The petitioner has challenged before this Court the said show cause notice and has demanded refund of Rs. 4,806.85 collected by the respondents under threats and coercion by contending that stamping foil would not fall under Tariff I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, and polyvinyl chloride sheets, not otherwise specified. Fifty per cent ad valorem (3) *** *** *** *** (4) *** *** *** *** ExplanationI. - For the purpose of sub-item (2), 'plastics' means the various artificial or synthetic resins or plastic materials or cellulose esters and ethers included in sub-item (1). Explanation II. - This Item does not include electrical insulators or electrical insulating fittings or parts of such insulators or insulating fittings." "Item No. 68 - ALL OTHER GOODS, N.E.S. Item No. Tariff Description Rate of Duty 68. (a) All other goods, not elsewhere specified, but excluding - alcohol, all sorts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that this item does not include electrical insulators or electrical insulating fittings or parts of such insulators or insulating fittings. Admittedly stamping foils are not covered by the aforesaid Explanation. Hence, in our view learned Advocate Mr. Kaji has rightly pointed out that stamping foils are covered by Item 15A(2). Item 15A(2) is exhaustive specific entry which covers plastic articles of all sorts, in different shapes even of strips or foils, whether laminated or not. Therefore there is no reason to cut down import of this wide entry and to hold that stamping foils are excluded by the said Item and that they would fall within residuary Item 68. 8. Mr. Kaji, learned Advocate appearing on behalf of the petitioner, has relied up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fiscal policy not to put people in doubt and quandary about their liability to duty. When a particular product like V.P. Latex known to trade and commerce in this country and abroad is imported, it would have been better if the article is, eo nomine, put under a proper classification to avoid controversy over the residuary clause. As a matter of fact in the Red Book (Import Trade Control Policy of the Ministry of Commerce) under Item 150 in Section II, which relates to 'rubber, raw and gutta percha, raw' synthetic latex including vinyl pyridine latex and copolymer of styrene butadiene latex are specifically included under the sub-head 'Synthetic Rubber'. We do not see any reason why the same policy could not have been followed in the I.C.T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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