PEARL PLASTIC MANUFACTURING CO Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS group of Writ Petitions is in respect of imposition of additional duty of Customs (countervailing duty) on acrylic sheet scrap imported by these petitioners. Imports in some of these petitions are prior to 1st March, 1982, while imports in most of these petitions are subsequent to 1st of March, 1982.

(2.) THE date of 1st of March, 1982 is relevant because after 1st of March, 1982 Explanation III has been added to Central Excise Tariff Item 15a which is the relevant item for the purpose of imposition of countervailing duty on acrylic sheet scrap. The relevant Tariff Item 15a prior to 1st of March, 1982 was as follows : 15a. "artificial OR SYNTHETIC RESINS AND PLASTIC MATERIALS AND cellulose ESTERS AND ETHERS, AND ARTICLES THEREOF -

(3.) IN respect of Acrylic sheet scrap which has been imported prior to 1st of March 1982, there is no dispute that acrylic sheet scrap, for the purpose of imposition of countervailing duty, would fall under the residuary Central Excise Tariff Item No. 68 and not under Item 15a. In the case of indo Plast and Anr. v. Union of India and Ors. reported in 1987 (32) ELT 463 (Bom.) a Division bench of this Court considered a case where acrylic plastic scrap was imported prior to 1st of march 1982. The Division Bench held that 'acrylic plastic scrap' would fall under Central Excise tariff Item 68 and not under Central Excise Tariff Item 15a, as Item 15a does not cover scrap. In view of this decision, in respect of 'acrylic sheet scrap' which has been imported prior to 1st of March 1982, the scrap is classifiable for the purpose of countervailing duty under Central excise Tariff Item 68.