1996 (1) TMI 247

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....heir manufacturing operations claiming assessment under Notification No. 329/77 dated 26-11-1977 as applicable to glass produced by mouth-blown process and glassware produced by manually operated press. In 1980 they installed semi-automatic press but continued to avail exemption applicable to glass and glass- ware. Consequent to initiation of proceedings through a Show Cause Notice they were finally adjudged by Collector to be liable to pay duty @ 35%, the tariff rate, and in pursuance thereof demand of Rs. 906178.14 was confirmed and a penalty of Rs. 1 lakh was also imposed upon them. 2.  Arguing for the appellants, Ld. Counsel submits that in the manually operated processes which were employed in 1980, the plunger was being moved ....

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.... Notification No. 329/77 and Item 12 of Notification No. 36/84, and 9 of Notification 59/85 on the ground that they had employed semi-automatic process. This plea was taken before Collector but the Collector appears to have rejected it on a extraneous ground that the machine was sophisticated. 4. Ld. DR submits that once a mechanical press had been installed the operation no longer remained manual and, therefore, lower rate was correctly denied to them. It could not be also considered that the glassware was being manufactured through semi-automatic process because the Collector has described in para 8 of his order that this machine was a sophisticated glass- making machine. 5. We have heard both sides. To the extent that mec....

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....the first mould manually and where either compressed air or mechanically operated press is usd......." Twenty  five per  cent  ad-  valorem   6. This notification prescribed concessional rate of duty in case molten glass is taken manually and whether compressed air or mechanically operated press is used. Ld. counsel submitted that during the material period molten glass was taken manually to the mould, and a mechanically operated press had been installed. The two conditions under Sl. No. 1 of this notification were fully satisfied by them during the period covered by the impugned order. In view of this we observe that Collector ought to have examined this plea with reference to the claim of asses....