SHELLYA INDUSTRIES Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE short point involved in this case is whether plastic sacks, known as high density polythelene woven sacks, are classifiable under item 15A(2) of the Central Excise Tariff or under item 68 thereof.

(2.) THE appellants were not present when the case was called for hearing today. Their letter dated 27 -6 -83 was brought to our notice in which the appellants have stated that their case may be decided on the basis of their submissions made in their revision application (now the subject appeal before us after its transfer to the Tribunal) since they were not in a position to attend the hearing. We, therefore, decided to take up the case on merits.

(3.) WE find from the records that the appellants were called upon to pay an amount of Rs. 7,731.55, being the duty leviable on HDPE woven sacks during the period from 1 -3 -75 to 30 -6 -75 at the rate of 1% under item 68 CET. In addition, a penalty of Rs. 250.00 was also imposed on them under Rule 173 -Q of the Central Excise Rules, 1944 for violation of the provisions of Rules 173 -F and 173 -G on the ground that they removed the goods without payment of duty during the aforesaid period. Before the Assistant Collector, the appellants defence was mainly two -fold -