CHEMICOAT LTD Vs. COLLECTOR OF C. EX.

JUDGEMENT

(1.) THIS is an appeal against the order of the Collector of Central Excise, Baroda : -

(2.) BRIEFLY stated, the facts are that the Central Excise authorities initiated action against the appellants for not paying duty on PVC films which were metallised and lacquered in the appellant's factory culminating in the passing of the impugned order demanding duty etc. In the appeal before us, the appellants have assailed the order on the ground, inter alia, that metallising and lacquering of films did not amount to manufacture. It is further stated that before metallising/lacquering, the very same films had borne duty under Tariff Item 15A(2) of the erstwhile Central Excise Tariff. The matter was heard at length on various grounds taken in the appeal and judgment was reserved on conclusion of hearing. It is not necessary to go into all the grounds because the appeal can be decided on the short point viz., whether metallising/lacquering of PVC films amounts to manufacture and if, the answer is in the negative, whether metallised/lacquered films should be subjected to duty once again under Tariff Item 15A(2) which covers both bare films as well as metallised/lacquered films.

(3.) AFTER the hearing was completed, but before the judgment could be given, the appellants moved a Miscellaneous Application enclosing a copy of the judgment of the Division Bench of Bombay High Court in the case of Garware Plastics and Polyester v. Union of India [1991 (52) ELT 506 (Bom.)] in which it was held that lacquering and metallising of polyester films does not amount to manufacture. It was stated in the application that the judgment is fully applicable to the facts of the appellants' case; that there is no other judgment except this one involving the facts regarding lacquering and metallising of polyester films. In view of the request in the application, the matter was re -opened and the Miscellaneous Application was heard.