UNIVERSAL TRADES PRIVATE LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE short question that arises for consideration in this writ petition is, whether the recorded magnetic tepes in spools/pancakes are liable to excise duty even though the same are not marketable and even if excisable, whether they are covered by exemption notification issued from time-to-time?

(2.) THE facts relevant for the purpose of then present petition are as follows: the petitioners inter alia manufacture pre-recorded cassette tapes. The petitioners purchase magnetic tapes in spools falling under the erstwhile Tariff Item 59 (1) of the Central Excise Tariff ("c. E. T. " for short ). On recording the magnetic tapes in spools/pancakes they were classifiable under Tariff Item 59 (2) of the C. E. T. Thereafter, the magnetic tapes are cut to size and fixed in the audio cassette tapes. This sound recorded cassette tapes were classifiable under Tariff Item 59 (4) of the C. E. T. Thus, under the C. E. T. unrecorded magnetic tapes in spools/pancakes were classifiable under 59 (1) of C. E. T. and sound recorded magnetic tapes in spools/pancakes were classifiable under 59 (2) of the C. E. T. and sound recorded cassette tapes were classified under 59 (4) of the C. E. T.

(3.) BY Exemption Notification No. 102 of 1982/ce dated 28th February, 1982 the Central Government in exercise of its powers conferred by Rule 8 (1) of the Central Excise Rules, 1944 exempted recorded articles falling under Item 59 of the First Schedule of the Central Excise and Salt Act from whole of the excise duty leviable thereon, provided that such articles are made from any article, falling under the said Item 59 and are not intended for sale or the promotion of sale.