CAPRIHANS INDIA LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) In the present case we are concerned with printed PVC sheets which have already borne duty of 25%, having been classified under Chapter 39 Heading 39.20, which deals with plastics and articles thereof. We are concerned here with two Assessment Years 1995 -96 and 1996 -97. It is an admitted position that classification in the previous year dated 1st March, 1994 has been accepted by the Department and duty has been charged only once and not twice over as sought to be charged at present. Various show cause notices have been issued relating to these two assessment years started from the show cause notice dated 18th March, 1996. The material part of the said notice reads as under:

(2.) Even the Assistant Commissioner in his order dated November 19, 1997 correctly proceeds on the footing that by mere printing, the fabric does not lose its original identity. However, despite this finding of the Assistant Commissioner, the Assistant Commissioner went on to levy Excise duty twice over in respect of the same product, both times under Chapter 39 Heading No. 39.20.

(3.) The Commissioner (Appeals) by his order dated 30th March, 1999 allowed the Assessee's appeal and stated that based on the Assistant Commissioner's finding that no different product except the product under Chapter 39 Heading No. 39.20 emerges after printing, the resultant product could not be liable to duty again as no manufacture could possibly be said to have taken place.