Plastic exemption applies despite an intermediate duty-paid stage; refund benefit also follows, subject to limitation review.

An exemption for articles made of plastics produced out of artificial resins was held to remain available where the final product was made from duty-paid plastic sheets derived from such resin, because the notification did not require direct manufacture from resin without any intermediate stage. The same reasoning applied to the later refund-related notification, so the goods also qualified for that benefit. The refund claim, however, still required examination of limitation before any refund could be granted, and the matter was remanded on that limited point.

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Issues: (i) Whether model plastic cards made from duty-paid plastic sheets were entitled to exemption under Notification No. 68/71 dated 29-5-1971; (ii) Whether the appellants were entitled to refund under Notification No. 182/82 dated 11-5-1982, and whether the matter required examination of limitation.

Issue (i): Whether model plastic cards made from duty-paid plastic sheets were entitled to exemption under Notification No. 68/71 dated 29-5-1971.

Analysis: The exemption covered articles made of plastics produced out of artificial resins or plastic materials falling under sub-item (1) on which duty had already been paid. The cards were admittedly manufactured from duty-paid rigid plastic sheets, and those sheets had emerged from artificial resins. The mere existence of an intermediate product did not defeat the exemption, since the proviso did not require direct production from resin without any intervening stage.

Conclusion: The appellants were entitled to exemption under Notification No. 68/71 dated 29-5-1971, and the finding denying the benefit was set aside.

Issue (ii): Whether the appellants were entitled to refund under Notification No. 182/82 dated 11-5-1982, and whether the matter required examination of limitation.

Analysis: The later notification was materially similar to the earlier exemption notification and extended relief to articles of plastics produced out of artificial resins or plastic materials on which duty had already been paid. Since the blank cards were produced from duty-paid material derived from artificial resin, the appellants were entitled to the benefit. However, the refund claim had not been examined on the question of limitation, which remained necessary before granting refund.

Conclusion: The appellants were entitled to the benefit of Notification No. 182/82 dated 11-5-1982, and the refund matter was remanded for consideration of limitation.

Final Conclusion: The appeals succeeded on the exemption issue, and the refund claim was not finally granted but sent back for limited reconsideration on limitation.

Ratio Decidendi: An exemption for articles made of plastics produced out of artificial resins is not defeated merely because the final product is manufactured through an intermediate duty-paid plastic product derived from such resin, unless the notification expressly excludes that intermediary stage.

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