Judgment:
1. In this appeal filed by M/s Unipol Plastic Industries Pvt. Ltd., the matter relates to the classification of the product referred to as Card Cans. The appellants were manufacturing Card Cans out of High Density Polythelene and Low Density Polythelene. These Plastic Card Cans were produced out of duty paid excisable goods falling under Heading Nos.
39.01 to 39.12 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986). The Plastic Sheets were cut to proper size and holes were drilled as per requirement. Such processed sheets of plastics were further attached with some accessories. They purchased certain articles like top ring of steel and other accessories necessary to assemble at the site of the customer together with the Plastic Sheets manufactured in their factory in the form of Card Cans used for collecting the slivers of cotton or man-made fibre. They declared their classification under Heading No. 3922.90 which covers other articles of plastics and articles of materials of Heading Nos. 39.01 to 39.14 other than articles of polyurethane foam. The Revenue had sought to classify these Card Cans under Heading No. 8448.00, which covers the following :----------------------------------------------------------------Heading No. Description of Goods----------------------------------------------------------------8448.00 Auxiliary machinery for use with machines of Heading No. 84.44, 84.45, 84.46 or 84.47 (for parts and accessories suitable for use solely or principally with the machines of this heading 2. It is seen from the Section Notes to Section XVI in which Section Chapter 84 falls that Section XVI does not cover bobbins, spools, cops, cones, cores, reels or similar supports, of any materials. Such products are classifiable under Chapter 39,40,44 and 48 of Section XV of the Tariff as the case may be.
3. It is seen that the Assistant Collector of Central Excise had modified the classification list on the basis of appellants' letter dated 9-7-1986 wherein the process of manufacture and use of the product had been given. It is seen from the process of manufacture that the appellants were engaged basically in the manufacture of Plastic Sheets, which could be used for different purposes with other accessories, which the appellants had purchased from the open market.
We consider that the goods in question do not satisfy the criteria of machinery parts for their classification under Chapter No. 84 and they are basically the articles of Plastics. Under Notification No.132/86-CE., dated 1-3-1986, the articles of plastics falling under sub-heading No. 3922.90 attract rate of duty of 15% Adv. They could enjoy exemption if they fulfilled the conditions as given under Col. 5 of Sl. No. 38 of the Table annexed to that Notification. It is provided that such articles if made out of goods falling under Heading Nos.
39.01 to 39.15 on which the duty of excise leviable thereon have already been paid or such articles are produced out of scrap of plastic then it could enjoy exemption from duty. This aspect of the matter is not before us and we do not give any finding whether these articles were eligible for full exemption from duty. It has to be decided on the basis of the fulfilment of the conditions referred to above.
4. The ld. Collector of Central Excise (Appeals) had also referred that the Assistant Collector had not issued any show cause notice to the assessee before modifying the classification which he should have done.
We also find that the classification list had been modified and no appealable order had been passed. However, as we have taken a view on merits of the case, we are not going into this aspect of the matter.
5. Taking all the relevant considerations into account, we consider that the goods in question are classifiable under sub-heading No.3922.90 and not under Heading No. 84.48. The appeal is disposed of in the above terms. Ordered accordingly.