COMMISSIONER OF CUSTOMS Vs. A.N. SONS

JUDGEMENT

(1.) IN this appeal filed by the Revenue, the matter relates to the interpretation of the conditions under Col. 5 of the Table at Sl. No. 32 of the Notification No. 53/88 -C.E., dated 1 -3 -1988. The respondents are M/s. A.N. Sons. The Commissioner of Customs (Appeals) had taken a view that no counterveiling duty under Section 3 of the Customs Tariff Act, 1975 was leviable on the Acrylic Plastic Sheets when they had been manufactured in the foreign country out of scrap of plastics and that there was no condition about due payment with regard to the scrap of plastics mentioned in the conditions subject to which nil rate of duty was applicable to Acrylic Plastic Sheets.

(2.) WHEN the matter was called, none appeared for the respondents. Earlier, the matter was fixed for hearing on 9 -7 -1999 and on the request of the respondents, the matter was fixed for today. Copies of the appeal papers had earlier been sent to the respondents on 25 -4 -1996 and the copies were again sent to them under communication dated 24 -7 -1999. As the matter is old, as the goods were imported in the year 1991, we are proceeding to deal with the matter on merits after hearing Shri R. Babu, JDR. The respondents had imported Acrylic Plastic Sheets. On import, they had not paid any additional duty of Custom under Section 3 of the Customs Tariff Act, 1975 on the ground that the Acrylic Plastic Sheets (Off Cuts) imported were manufactured out of scrap of plastics and there was no stipulation in the Notification No. 53/88 -C.E., dated 1 -3 -1988 that duty liability should have been discharged in respect of scrap of plastic.

(3.) WE find that the Acrylic Plastic Sheets falling under Heading No. 39.20 of the Central Excise Tariff were exempted from duty if they were produced out of any of the following materials or a combination thereof namely (i) artificial resin or plastic materials of Heading Nos. 39.01 to 39.14; (ii) Scrap of plastics; (iii) methyl methacrylate monomer. The condition subject to which the exempted rate was available was that the above materials should have paid duty of excise or the counterveiling duty. The ld. Commissioner of Customs (Appeals) had taken a view that the stipulation with regard to the due payment was only with regard to the methyl methacrylate and monomer. We consider that such an interpretation is not borne out by the language of the Notification inasmuch as the artificial resin or plastic materials classifiable under Heading No. 39.01 to 39.14 were the primary forms of plastics and were chargeable to appropriate rate of duty. If the interpretation as placed by the ld. Commissioner of Customs (Appeals) is adopted then even when no duty has been paid on the artificial resins or plastic materials, the Acrylic Plastic Sheets will be eligible for exemption which is not borne out by the scheme of the Notification. The scrap of plastic are also dutiable under Heading No. 39.15 of the Tariff. They are required to pay appropriate rate of duty before they are used in the manufacture of acrylic plastic sheets.