SHARP INDUSTRIES LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) This Appeal is against the Judgment dated 11th July, 2000 passed by the Customs, Excise and Gold (Control) Appellate Tribunal (for short CEGAT).

(2.) Briefly stated the facts are as follows: The Appellants manufacture a product which consists of aluminium foil, whose thickness does not exceed 0.2 mm, which is then covered on one side with a polyester film and on the other side with polyethylene. The Appellants also manufacture pouches out of the same material. The question for consideration is as to whether these products are classifiable under Tariff Heading 76.07 and 76.12, as claimed by the Appellants, or under Tariff Heading 39.20.38 and 39.23.90, as claimed by the Respondent. All the authorities below, including the Tribunal in the impugned Judgment, have held against the Appellants. The Commissioner (Appeals) and the Tribunal have based their decisions upon test reports which show that plastic predominates over the aluminium foil accounting for 2/3rd of the total weight. Reliance has also been placed on HSN Explanatory Notes. The findings being based on facts and the Tribunal being the final authority on facts, this Court cannot interfere. It has been held in the case of J. K. Synthetics Ltd. vs. Commissioner of Central Excise, Jaipur, reported in (2003) 11 SCC 349, that the Tribunal is the best judge of facts and this Court should not interfere. The same ratio has been laid down by this Court in the case of Ugam Chand Bhandari vs. Commissioner of Central Excise, Madras, reported in (2004) 5 SCC 757. For this reason itself this Appeal requires to be dismissed.

(3.) However, as the matter has been argued in great detail and as we find that subsequent to the impugned Judgment the Tribunal has adopted an erroneous view, we deem it expedient to also deal with merits and clarify the position.