Gandhi and Associates Vs. Collector of Central Excise - Court Judgment

Excerpt:

.....holding that vide serial no. 38 of notification 132/86-c.e. these are articles of plastic. on appeal, the collector (appeals) set aside this order holding that articles of plastics are exempted under the aforesaid notification only if such articles are made out of goods falling under heading numbers 39.01 to 39.15. since the impugned goods are in addition made of fibre glass, these cannot be considered as articles made wholly of plastic falling under 39.01 to 39.15. he, therefore, set aside the order of the assistant collector and denied exemption. hence this appeal.3. none present for the appellants who, however, through written submissions have desired decision on merits. in the written submissions the alternative point is made that the subject goods be classified under 7014.00 of the schedule to the tariff act.4. the dr submits that the impugned goods are not made wholly of plastic but are also made out of fibre glass falling under 7014 and therefore, these cannot be considered as articles made of goods falling under 39.01 to 39.15. the collector (appeals), therefore, has correctly denied exemption to these goods under notification no. 132/86-c.e., dated 1-3-1986.5. we.....

Judgment:

1. This appeal is directed against Order-in-Appeal No. GSM-2177/89, dated 31-10-1989 of Collector (Appeals).

2. The appellants had claimed exemption under Serial No. 38 of Notification 132/86-C.E., dated 1-3-1986 in the case of certain articles like Tanks, Wash Basins, Domes, Channels, Water Tanks, etc.

The Assistant Collector while classifying such articles under Chapter 39 allowed exemption to these articles holding that vide Serial No. 38 of Notification 132/86-C.E. these are articles of plastic. On appeal, the Collector (Appeals) set aside this order holding that articles of plastics are exempted under the aforesaid notification only if such articles are made out of goods falling under Heading Numbers 39.01 to 39.15. Since the impugned goods are in addition made of fibre glass, these cannot be considered as articles made wholly of plastic falling under 39.01 to 39.15. He, therefore, set aside the order of the Assistant Collector and denied exemption. Hence this appeal.

3. None present for the appellants who, however, through written submissions have desired decision on merits. In the written submissions the alternative point is made that the subject goods be classified under 7014.00 of the Schedule to the Tariff Act.

4. The DR submits that the impugned goods are not made wholly of plastic but are also made out of fibre glass falling under 7014 and therefore, these cannot be considered as articles made of goods falling under 39.01 to 39.15. The Collector (Appeals), therefore, has correctly denied exemption to these goods under Notification No. 132/86-C.E., dated 1-3-1986.

5. We have heard the D.R. and perused the records of the case. Under Notification No. 132/86 articles of plastic under Serial Number 38 of the notification are chargeable to nil rate of duty if such articles are made out of goods falling under 39.01 to 39.15 on which duty of excise or additional duty has already been paid. Admittedly the goods here are not made only from goods falling under 39.01 to 39.15. Fibre glass is classifiable under 70.14 also. Since the impugned goods are not made wholly out of plastic we hold that the Collector (Appeals) has correctly denied the exemption to these goods under Serial No. 38 of the Notification 132/86-C.E., dated 1-3-1986. In regard to the alternative plea now made to classify these articles under 7014, we note that no material has been enclosed to justify this classification.

The written submissions contained only a bare plea in this regard without any material. We, therefore, reject this plea.