RAISH PLASTICS Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE 15 writ petitions raise a common question regarding leviability of excise duty on the manufacture of acrylic plastic sheets, tubes and plastic bangles out of Methyl Methacrylate Monomer (hereinafter referred to as "the Monomer"), both, regenerated and virgin, so it would be convenient and proper to dispose them of by this common order.

(2.) THE facts, as stated in the case of the petitioner Raish Plastics (S. B. Civil Writ Petition No. 1543 of 1980) are that the petitioner manufactures acrylic plastic sheets, whether flat or round, and plastic bangles, through cylindrical process. In the manufacture thereof the petitioner uses regenerated Monomer manufactured in its own factory out of plastic scraps and it also purchases regenerated Monomer from the market. THE Monomer virgin is purchased by the petitioner from Polymer Corporation of Gujarat Ltd. , Baroda. THE other petitioners purchase monomer virgin from other firms of different places. THE petitioners' case is that they have been enjoying exemption from Central excise duty and were not required to obtain any licence. THE manufactures of the plastic bangles were enjoying this exemption right from Sept. 1973, when the original notification No 38/73 C. E. dated 1. 3. 1973 was amended by notification No. 174/73 C. E. dated 8. 9. 1973, whereby exemption was granted to acrylic sheets, if produced out of Monomer. THE petitioners claim their products wholly exempt from payment of Central excise duty. THE Superintendent, Central Excise, Range, Jodhpur, asked not to sell their products manufactured out of Monomer virgin till orders of the Central Excise Department. Such a direction was given to the manufactures of A. P. Bangles of Jodhpur. THEreupon they represented the matter through their Association, viz,. THE Plastic Industries Association. THE office bearers of the Association met the Assistant Collector, Central Excise, Range, Jodhpur on 9th July, 1980 & explained to him the entire process of manufacture. He also visited the factory of M/s. Ambica Plastic, Pratap Nagar, Jodhpur, and the manufacturing process was shown to him. However, the Superintendent, Central Excise, Range, Jodhpur, sent the following letter dated 15. 7. 1980 (Annexure 1) to the President, Plastic Bangles Association, Jodhpur:- "central EXCISE RANGE, JODHPUR No. G/-6/21/78/9233 dated 15-7-1980 To THE President, Plastic Bangles Association, Choorigar Bazar, JODHPUR. D/sir, Sub:-Central Excise, Excitability of A. P. tubes-regarding. THE A. P. tubes/bangles manufactured out of M. M. Monomer virgin is excisable. THE regenerated monomer brought from outside is also treated at par with virgin M. M. Monomer. You are, therefore, requested to advise all the Association's members, manufacturing the said goods, should obtain Central Excise Licence IMMEDIATELY. Please also note that manufacture and clearance of the said goods should be carried on under Central Excise Rules 1944. Yours faithfully Sd. Kartar Chand (KARTAR CHAND) 15-7-80"

(3.) ITEM No. 15a-is as under:- "item No. 15a-PLASTICS ITEM No. Tariff Description Rate of duty 15a Artificial or synthetic resins and plastic materials and cellulose esters and ethers, and articles thereof - (1) The following artificial or synthetic resins and plastic materials, and cellulose esters and ethers, in any form, whether solid, liquid or pasty, or as powder, granules or flakes, or in the form of moulding powders, namely: - Fifty per- cent ad- valorem (i) Condensation, Poly condensation and Polyaddi-tion products, whether or not modified or polymerised, Aminoplasts, Alkyds, Poly amides, Super polymides Polyesters, Polyallyl esters, Polycarbonates, Polyethers, Polyethylane imines, Polyurethanes, Epoxide resins and Silicones; (ii) Polymerisation and co-polymerisation products such as Polyethylene, Polyterahaloethylanes, Polyisobutylane, Polystyrane, Polyvinyl, chloride, Polovinyl acetate, Polyvinyl chloreacetate and other Polyvinyl derivatives and Coutnarone-Indene Resins; and (iii) Cellulose acetate (including) Cellulose diacetate or Cellulose traiacetate), Cellulose acetate butyrate and Cellulose Prepionate, Cellulese acetate propionate, Ethycellulose and Benzylcellulose, whether plasticised or not, and plasticised Cellulose nitrate. (2) Articles made of plastics, all sorts, including; tubes, rods, sheets, foils, sticks, other rectangular or profile shapes, whether laminated or not, and valorem, whether rigid or flexible, including layflat tubings and polyvinyl chloride sheets, not otherwise specified. (3) Polyufethane foam Seventy-five per cent ad-valorem. (4) Articles made of Polyurethane foam. Sevent-five per cent ad-valorem. Explanation I.- For the purpose of sub-item (2), "plastics" means the various artificial or synthetic resins or plastic materials or cellulose esters and eithers included in sub-item (1 ). Explanation II.- This item does not include, - (a) polyester films; and (b) electrical insulators or electrical insulating fittings or parts of such insulators or insulating fittings. "