CEAT LIMITED Vs. ASSISTANT COLLECTOR CENTRAL EXCISE

JUDGEMENT

(1.) The petitioner company is a manufacturer of glass fibre products. With effect from March 16,1976 excise duty was levied on glass fibre products for the first time under Tariff Item No. 22-F of the first schedule to the Central Excise and Salt Act, 1944 (for short the Act). Tariff Item 22-F . "Mineral Fibres and yarn and manufactures therefrom in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power, the following, namely (1) glass fibre and yarn including glass tissues and glass wool 15% advalorem.

(2.) Under notification No. 87/76 C. E. dated March 16, 1976 the Central Government had exempted mineral fibres and yarn and manufactures therefrom, falling under Tariff Item No. 22-F from the whole of the duty of excise leviable thereon. "Notification No. 87/76 dated 16-3-1976 : In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Exise Rules, 1944, the Central Government hereby exempts mineral fibres and yarn and manufactures therefrom, falling under Item No. 22-F of the First Schedule to the Central Excise and Salt Act, 1944 (1 of 1944), specified in column (2) of the Table hereto annexed, from the whole of the duty of excise leviable thereon. <FRM>JUDGEMENT_187_ALT1_1991Html1.htm</FRM>

(3.) By the notification No. 206/81 C.E. dated December 30, 1981 an explanation was added. Explanation : In the notification "Yarn spun wholly out of glass fibres shall not include continuous filament yarn.'