DAS AND COMPANY Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THESE appeals are before us on reference by a Division Bench. The issue referred in both is common and is reproduced below : -

(2.) THE amendment to chapter note 6 referred to above is Note 6 to Chapter 39 of the Central Excise Tariff. Chapter 39 itself relates to 'Plastics and Articles Thereof and the controversy is about Clause (b) of Note 6 which came into force with effect from 1 -3 -1988 and reads as under : -

(3.) THE dispute in both the appeals relate to whether conversion of plastic materials from one primary form to another would amount to 'manufacture' attracting duty under chapter sub -headings 3901 to 3914. In the case of M/s. King Plastics, the assessee obtains duty paid plastic granules and were undertaking colouring of plastic granules and converting the plastic granules to plastic pulverised powder. Thus, the activity was converting plastics from granules to powder. In the case of M/s. Das and Co., they purchased polyvinyl alcohol powder from the market and diluted it with water and thus, converted the product from solid form to liquid form. The duty demand in the case of M/s. King Plastics is from March 1986 to August 1987 and in the case of M/s. Das and Co. from April 1986 to September 1986. Thus, both the demands were prior to the aforesaid amendment by incorporating Clause (b) in Note 6 with effect from 1 -3 -1988.