Excisability of industrial alcohol: State levies invalid prospectively, Collectorates to follow Supreme Court guidance.
The Supreme Court held that State imposts on industrial alcohol were unauthorised and invalid prospectively, distinguishing potable alcohol and legitimate fees; past collections are not to be refunded. The Board directs Collectorates outside Tamil Nadu to apply paras 88-89 of that judgment to past Central Excise demands for ethyl alcohol and related spirits prior to 1-3-1989, while Collectorates in Tamil Nadu must await the Division Bench decision referenced in para 90.

Recovery of government dues: department may proceed absent an obtained stay, with a three month concession to seek stay.
The department may recover duties confirmed in an order unless the assessee obtains a stay; filing an appeal alone does not operate as a stay. As an administrative concession, a total of three months from communication of the order is allowed for filing the appeal and securing orders on a stay application (one month to file, two months to obtain stay orders). If an appellate authority rejects a stay application before three months elapse, recovery proceedings must be initiated immediately.

Authority to restrain disposal: officers lack power to direct non-removal of plant in notices; seizure or statutory order may be used.
The Board clarifies that there is no provision in the Central Excises & Salt Act, 1944 or its rules empowering an officer to direct an assessee not to alter or dispose of plant and machinery in a Show Cause Notice issued under Rule 233(A). The Department may instead seize the plant and machinery when confiscation is proposed or resort to the proviso to Section 110(1) of the Customs Act, 1962 as applied mutatis mutandis to serve an order preventing removal or dealing with the goods; Circular No. 29/89 is modified accordingly.

Assessable value inclusion of fitted accessories determines tractor excise valuation and requires adding such accessories at factory gate.
Accessories fitted to tractors at the time of clearance must be included in the assessable value for central excise because goods are assessed in the form in which they are delivered for sale at the factory gate; therefore the cost of such fitted accessories is added to the tractor's taxable value.

Soya milk classification: flavoured soya milk beverages treated as preparations, therefore ineligible for exemption under relevant notifications.
The manufacturing process yields soya milk at the initial grinding stage, but subsequent addition of sugar, juices, flavours and other ingredients produces flavoured soya milk beverages that laboratory analysis and ingredient labelling identify as beverages or preparations rather than plain soya milk; only the unadulterated soya milk from the first stage is within the exemption notifications' scope, while flavoured preparations are not eligible.

Classification of blended yarn: predominance by weight governs heading choice, allowing presence of non specified fibres.
Classification of acrylic predominant blended yarns manufactured by garnetting depends on the predominance of a single textile material by weight and the wording of headings; Section Note 2(A) directs classification as if the article wholly consisted of the predominant material, and Note 2(B)(ii) requires choosing the heading within the chapter disregarding materials not classified in that chapter. Where sub headings do not expressly exclude other textile materials, acrylic blends containing fibres such as viscose or natural fibres remain classifiable under the acrylic/modacrylic sub headings, and the earlier Board circular is modified accordingly.

Classification of laminated textile products: adhesive-coated cotton with removable paper treated as textile suitable for industrial use.
The Board applied the essential characteristic test and Explanatory Notes to determine that adhesive-coated cotton fabric, produced with a removable paper carrier and used as raw material for shoe-uppers, is not impregnated paper nor an identifiable footwear part; its essential character is imparted by the fabric and it should be treated as a laminated textile product suitable for industrial use under the heading for other textile fabrics.

Classification of perfumery: Javadhu treated as perfume while flower dust treated as other perfumery for excise purposes.
Javadhu Powder, comprising sandalwood powders, sandalwood oil and floral perfume and applied to the human body for fragrance, is classifiable under Heading No. 33.03 as Perfumes; Flower Dust, a blend of fragrant plant parts and sandalwood powder intended to scent clothing, is classifiable under sub-heading 3307.90 as Other Perfumery, and neither product is treated as deodorant/antiperspirant or as a raw material for industry.

Classification of cold rolled structural sections under sub-heading 7308.90 clarified per HSN explanatory notes and tariff scheme.
Cold roll formed sections prepared for use in structurals are classifiable under sub-heading 7308.90. The Board found that Heading 7308 covers plates, rods, angles, shapes and sections prepared for use in structurals and that Heading 7216 excludes articles prepared for structural use; therefore, with effect from 1-3-1988 such cold roll formed sections should be classified under sub-heading 7308.90.

Exemption scope: diamond segments as parts of saw blades are ineligible for the saw-blade concessional duty exemption.
Diamond segments used as parts of circular and frame saw blades are classifiable as parts, not as saw blades, and therefore do not qualify for the partial excise exemption afforded to saw blades under the cited notifications; pending assessments must be finalised accordingly and trade and field formations informed.

Classification of flat rolled products: dimensional and shape criteria determine tariff heading, not trade nomenclature.
Classification of flat rolled iron and steel products is governed by physical characteristics and dimensions in the chapter notes. Products conforming to the specifications in Note 1(k) are classified by the width and shape criteria in that note; flat rolled products of a shape other than rectangular or square are treated as products of a width of 600 mm or more provided they do not assume the character of articles of other headings. Products not covered by the definition of flat rolled products fall to be classified under the chapter note for other bars or rods and allocated to the appropriate headings for bars or rods.

Classification of yarn from viscose and polyester waste as non synthetic staple fibre leads to viscose staple fibre tariff treatment.
Yarn made from viscose staple fibre blended with non-cellulosic soft waste (polyester waste) is classifiable under Heading 55.05 because fibres recovered from synthetic waste are of variable, non uniform length and therefore do not meet the technological definition of synthetic staple fibres in Heading 55.06; the Board's view rests on the Deputy Chief Chemist's technical opinion and prior tribunal and high court decisions to the same effect.

Classification of motor vehicle seats: automobile seats and two wheeler saddles follow distinct tariff treatment.
Bare cellular rubber seats manufactured by moulding for motor vehicles other than two wheelers are to be classified as automobile seats under the tariff chapter that lists vehicle seats, whereas seats for two wheelers are to be classified as saddles for two wheelers under the tariff chapter that specifically lists them; the Board accepted the conference recommendation and directed field formations and trade to be informed and pending assessments finalised accordingly.

Classification of printed wrappers: treated as other paper cut to size and eligible for converted paper exemption.
Printed wrappers cut to size for wrapping soaps, cakes, chocolates etc. are classifiable as other paper cut to size or shape under sub heading 4823.19 and, having undergone post manufacture conversion operations (printing, cutting, etc.), qualify as converted paper and are eligible for the converted paper exemption under the applicable excise notification.

Classification of non-alcoholic beverages: fruit-pulp drinks like Maaza fall under Heading 2202.90, not aerated waters.
Fruit-pulp drinks manufactured by mixing demineralised water, sugar and fruit pulp are not encompassed by the mineral or aerated waters entry, since that entry covers ordinary drinking waters (natural or artificial) often aerated or sweetened; such fruit-pulp beverages are to be treated as non-alcoholic beverages and classified under the residuary tariff heading for other non-alcoholic beverages rather than the mineral/aerated waters entries.

Classification of glaze frit: compositional equivalence to glass frit dictates reclassification and higher duty treatment under customs headings.
Where a declared Ceramic Glaze Frit in composition and characteristics conforms to Glass Frit, it shall be classifiable as Glass Frit rather than as Ceramic Glaze Frit; prior Board instructions treating Ceramic Glaze Frit under a different tariff heading do not apply to products that are chemically and physically powdered glass, and field formations and trade should be informed accordingly.

Excise duty on generating sets: earlier blanket exemption withdrawn, cases now to be examined on merits with prospective effect.
Board withdraws earlier instruction exempting diesel generating sets assembled at site and directs that individual cases be examined and decided on merits by Jurisdictional Officers in light of the principle that machinery superficially bolted to the ground remains movable property; the change has prospective effect and past assessments need not be reopened.

Classification of uninterrupted power supply systems deemed emergency power packs and classifiable under electric power converter tariff heading.
UPSS combine rectifiers, inverters and battery banks to provide emergency backup power. Functionally they match an emergency power pack comprising converters and energy storage, and therefore merit classification under the tariff provision for electric converters/emergency power packs rather than the residuary heading for miscellaneous electrical machinery; field formations and trade should be informed and pending assessments finalised accordingly.

Doctrine on Unjust Enrichment: refunds may be withheld if duty was passed to customers, though judicial awards can be complied with to avoid contempt.
Refunds of excise duty should be withheld where the officer finds the manufacturer or importer has passed on the duty burden to customers under the Doctrine on Unjust Enrichment; payments ordered by judicial bodies may be allowed to avoid contempt but should be challenged before higher forums on unjust enrichment; the referenced instructions are prospective and do not require reversal of prior refunds unless those refunds are independently erroneous.

Mechanical wood pulp classification clarified: exemption for certain newsprint depends on tariff-era definition and aggregate pulp composition.
For the period prior to 28-2-1986, chemi-mechanical and chemi-thermo mechanical pulps are to be treated as variations of Mechanical wood pulp and covered by Notification No. 163/67 when testing certified not less than fifty percent mechanical wood pulp. After 28-2-1986, the Tariff definition governs: chemi-mechanical and chemi-thermo mechanical pulps are regarded as semi-chemical and excluded from mechanical wood pulp, and the exemption applies to certain writing and printing papers only where mechanical pulp is under fifty percent but the aggregate of mechanical, chemi-mechanical and thermo-mechanical pulps exceeds fifty percent.