INARCO LIMITED Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) This appeal against the judgment and order of the Customs, Excise and Gold (Control) Appellate tribunal, concerns the classification of 'aprons' and 'cots'.

(2.) Aprons and cots are manufactured by the appellants. They are components of textile machinery. Synthetic rubber is the raw material for their manufacture and it is subjected to a series of processes, including extrusion and vulcanisation. At one stage of the manufacturing process unhardened tubes emerge. These are cut to small lengths ordered by the appellants' customers, and are aprons and cots.

(3.) The appellants paid excise duty on aprons and cots under Tariff Item 16-A. On 29/8/1967, an exemption notification was issued, whose benefit the appellants claimed. Consequently, the appellants paid no excise duty on aprons and cots until the year 1980. On 24/9/1980, a notice was issued to the appellants which required them to show cause why aprons and cots should not be classified under the residuary Tariff Item 68. The appellants' contention to the contrary was accepted. On 18/1/1982, the Collector of central Excise issued to the appellants a notice under Section 35-A (2 of the central Excises and Salt Act, 1944, requiring them to show cause why the order of the Assistant Collector should not be reviewed and set aside. The appellants' contention that aprons and cots were classifiable under Item 16-A was rejected and they were classified under Item 68. The appellants carried the matter in appeal to the tribunal. The tribunal affirmed the order of the Collector, but restricted the demand to the date of his show-cause notice.