TaxTMI 
TaxTMI 
1985 (8) TMI 219
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....9-4-1982. The Appellate Collector held that the goods fell under Item 68 Central Excise Tariff and allowed the appeal. 2. The dispute arising for determination by us is whether articles of plastics such as radio cabinets, knobs etc. fell for classification under Item 15A (2) as held by the Assistant Collector or under Item 68 as held by the Appellate Collector during the period 28-2-1982 to 19-4-1982. 3. We have heard Shri V. Lakshmikumaran, S.D.R. for the appellant and Shri G.P. Jhala, Factory Administrator for the respondent. 4. There is no dispute about the position that such articles of plastics fell under Item 15A (2) before the introduction of the Finance Bill, 1982 in Parliament on 28-2-1982. However, by Notification No. 68/71, dated 29-5-1971, these were exempted from duty subject to certain conditions. Item 15A (2) as it stood then read as follows :- "Articles made of plastics, all sorts, including tubes, rods, sheets, foils, sticks, other rectangular or profile shapes, whether laminated or not, and whether rigid or flexible, including lay flat tubings and Polyvinyl chloride sheets, not otherwise specified." By the above referred-to notificati....
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....ed by Notification No. 149/82, the relevant portions of which are reproduced below :- "In exercise of the powers conferred by sub-Rule (1) of Rule 8 of the Central Excise Rules, 1944, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue and Insurance) No. 68/71-Central Excises, dated the 29th May, 1971, the Central Government hereby exempts articles made of plastics, all sorts, falling under sub-item (2) of Item No. 15A of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), except, - (i) film or sheet of regenerated cellulose and polyester films; whether lacquered or laminated or metallised or not; (ii) rigid plastic boards, sheeting, sheets and films, whether lacquered or laminated or metallised or not; and (iii) flexible polyvinyl chloride sheeting, sheets, films, whether lacquered or laminated or metallised or not, and lay flat tubings not containing any textile material, from the whole of the duty of excise leviable thereon." [The rest of the notification is not reproduced since it is not relevant for ....
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.... Collection of Taxes Act talks of imposition or increase of excise duty by a provision of a Bill. That was not the case with the 1982 Finance Bill in so far as the subject goods were concerned. Secondly, because the provisions of Section 3 of the aforesaid Act and the declaration thereunder appended to the Finance Bill did not have the result of giving immediate effect to the change brought about in Item 15A (2) on the introduction of the Finance Bill for, as noted above, Section 3 of the Act and the declaration apply only in case where the Bill imposes or increases excise duty on any goods. We, therefore, hold that non-specified articles of plastics continued to remain under Item 15A (2) till the enactment of the Finance Bill, 1982, whereupon they became classifiable under Item 68 Central Excise Tariff. The demand for duty from the appellant under Item 15A (2) in respect of non-specified articles cleared by them during the period 28-2-1982 to 19-4-1982 was, therefore, perfectly valid. 8. Shri Jhalla, in passing, referred to the Tribunal's decision in Collector of Central Excise, Indore v. M/s. Parmali Wallace Ltd. [1985 (21) E.L.T. 231 = 1985 W E.T.R. 41], though he stated....
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....1931, was, clearly applicable seeing that the change in the Tariff classification proposed in the Finance Bill, 1982 necessarily entailed an "increase of duty" of excise. In the instant case, the change proposed did not entail an "increase of duty" of excise. 11. This is apart from the larger question of the essential difference between the incidence and charge to duty on a levy being imposed and a determination of the applicable rate of duty once the goods are already leviable to duty. A duty of excise is a levy upon manufacture. Removal is relevant only for its assessment and qualification. Once the goods had already been levied to duty, a variation in the tariff description or classification does not imply a fresh levy, even if the results in change in the rate of duty. Such change has a relation to the rate' of duty rather than the levy itself or its incidence. 12. These aspects had been discussed in the Tribunal's. Order No. 103/1985-D, in Appeal No. 184 of 1980-D, M/s. The Vazir Sultan Tobacco Co. Ltd. v. Collector of Central Excise, Hyderabad [1985 (21)\E.L.T. 757 (Tribunal)] at length and need not be further adverted to here. EDITOR'S COMMENTS Section ....