PATEL PLASTICS Vs. UNION OF INDIA

JUDGEMENT

(1.) IN these petitions the common question which arises for determination is whether Plastic Battery Tops manufactured by the petitioners are covered by Tariff Item 42 which provides rate of duty for pilfer proof caps for packaging. The petitioners are manufacturing the plastic battery tops (cap seals) out of LDFE/HDPE granules by the process on moulding machines. The cap seals manufactured are used for packaging dry battery cells. The petitioners were clearing the said goods on the basis of residuary Tariff Item 68. The respondents took the view that the said product would be covered by Tariff Item 42 and it would not fall within Tariff Item 68.

(2.) AFTER the introduction of Central Excise Tariff Act, 1985, it is the contention of the respondents, that the petitioners' products, which are known as Plastic Battery Tops, are part of primary cells and primary batteries and, therefore, the petitioners are liable to pay excise duty as per Tariff Heading 85.06. It is the contention of the petitioners that plastic battery tops are not part of the primary cells or in any set of circumstances, with regard to parts of the battery, there is no separate Tariff Heading which provides levy of duty of excise on parts of primary cells or batteries.

(3.) IN the affidavit in reply, it is stated that the petitioners' product plastic battery tops or cap seals are used to protect the leakage of electrolyte from within the cell, to protect positive terminal from corrosion and to avoid short circuit of the cell during transportation and display on shelf and, therefore, it should be classified as goods falling under Tariff Item 42; cap seals on the dry battery cells five guarantee to the consumers that the cell is not tampered; that the battery cells cannot be used without destroying the cap seals and, therefore, also it would fall within the Tariff Item 42. Further it is stated that the phrase 'pilfer proof caps' should be given wide meaning and as the cap seals are used, with the purpose that there would be no tampering with the contents of the material packed in any container and the main purpose of pilfer proof caps is to prevent the pilferage, substitution or alteration of the contents packed in the container, the petitioners' product would be covered by Tariff Item No. 42.