Central excise duty on plastic torches cleared after amendment was upheld despite manufacture before the change in tariff

Plastic torches were treated as classifiable under Tariff Item 68 of the Central Excise Tariff, not under Tariff Item 15A(2), so central excise duty applied to goods cleared after the tariff amendment. The exemption under Notification No. 68/71-C.E. was not available because the relevant protection had to exist at the stage of clearance, and the goods were not exempt from duty at the time of manufacture. The fact that the torches were manufactured before 1.3.1982 did not prevent duty from attaching when they were subsequently cleared, and the duty demand was upheld.

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Issues: Whether plastic torches manufactured before the tariff amendment but cleared thereafter were liable to central excise duty, and whether they were exempt under Notification No. 68/71-C.E.

Analysis: Plastic torches had already been held to be classifiable under Tariff Item 68 of the Central Excise Tariff and not under Tariff Item 15A(2). Duty was payable on goods falling under Tariff Item 68, and the relevant exemption did not protect the goods at the stage of clearance because they were not exempted from duty at the time of manufacture. Accordingly, the fact that the goods were manufactured before 1.3.1982 did not exclude duty when they were cleared during the subsequent period.

Conclusion: The plastic torches were dutiable and the duty demand was fully upheld against the assessee.

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