TaxTMI 
TaxTMI 
1982 (5) TMI 183
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....hereinafter referred to as "the Monomer") both, regenerated and virgin, so it would be convenient and proper to dispose them of by this common order. 2. The facts, as stated in the case of the petitioner Raish Plastics (S.B. Civil Writ Petition No. 1543 of 1980) are that the petitioner manufactures acrylic plastic sheets, whether flat or round, and plastic bangles, through cylindrical process. In the manufacture thereof the petitioner uses regenerated Monomer manufactured in its own factory out of plastic scraps and it also purchases regenerated Monomer from the market. The Monomer virgin is purchased by the petitioner from Polymer Corporation of Gujarat Ltd., Baroda. The other petitioners purchase monomer virgin from other firms of diff....
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....;Choorigar Bazar, Jodhpur, D/Sir, Sub:- Central Excise, Excisability of A.P. tubes - regarding. The A.P. tubes/bangles manufactured out of M.M. Monomer virgin is excisable. The regenerated monomer brought from outside is also treated at par with virgin M.M. Monomer. You are, therefore, requested to advise all the Association's members, manufacturing the said goods, should obtain Central Excise licence IMMEDIATELY. Please also note that manufacture and clearance of the said goods should be carried on under Central Excise Rules, 1944. Yours faithfully Sd. Kartar Chand (KARTAR CHAND) 15-7-1980" The petitioners were required to obtain Central Excise licence and they were also inform....
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....t to A.P. bangles tubes. As the petitioners manufacture A.P. bangles tubes, they are liable to payment of appropriate duty right from 1975. Thus, it would appear that the respondents have denied the petitioners' claim of exemption of their projects both under Tariff Item 15A(2) and Notification No. 38/73 as amended by Notification No. 174/73. 4. The principal question, which arises for consideration, is as to whether the acrylic plastic sheets, tubes and plastic bangles manufactured by the petitioners are exempt from excise duty under Tariff Item No. 15A(2). Item No. 15A - is as under :- "Item No. 15A - PLASTICS Item No. 1 Tariff Description 2 Rate of duty 3 15A Artificial or synthetic r....
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....rwise specified. Fifty per cent ad valorem. (3) Polyurethane foam Seventy-five per cent ad valorem. (4) Articles made of Polyurethane foam Seventy-five per cent ad valorem Explanation I.- For the purpose of sub-item (2) "plastics" means the various artificial or synthetic resins or plastic materials or cellulose esters and ethers included in sub-item (1). Explanation II.- This item does not include,- (a) polyester films; (b) electrical insulators or electrical insulating fitting or parts of such insulators or insulating fittings. 5. Sub-item (2) of Item 15A embraces within its scope "Articles made of plastics". Plastics i.e., plastics materials enumerated therein, are only illustrative. In the expression ....
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....rial, so the petitioners are engaged in the manufacture of articles made of monomer. Their plastic articles, thus, are made of monomer. In Jalal Plastic Industries case (supra) a question was formulated, viz.. "Can we say that the plastic bangles are made of plastic within the meaning of sub-item (2) of Tariff Item 15A ?" This question was answered in the negative and it was observed as under :- "Having carefully scanned sub-item (2) of Tariff Item 15A in the light of Explanation I read with sub-item (1) of Tariff Item 15A, we are of the opinion that the expression "articles made of plastics" means articles for the manufacture of which plastic material has been used as a raw material. It does not suggest, in our opinion, a non-plastic ra....
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....heets/tubes and the raw material for this end product is indisputably monomer. I am in respectful agreement with the view of the Gujarat High Court that monomer is not a plastic material and that the petitioners (in the Gujarat case) have been manufacturing plastic bangles out of monomer by subjecting to the polymerisation process. They are not liable to pay excise duty on the bangles manufactured by them under Tariff Item 15A. Similarly in the present case the petitioners, who are manufacturing acrylic sheets/tubes and plastic bangles out of monomer virgin and regenerated by subjecting them to the polymerisation process, are not liable to excise duty and their products are not covered under Tariff Item 15A(2). 6. So far as acrylic plast....