1990 (9) TMI 76

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....ses and Salt Act provides for payment of ad valorem duty at the rate of 50% in respect of manufacture of artificial or synthetic resins and plastic materials and articles thereof. Tariff Item No. 15A(2) refers to articles made of plastics, all sorts. By Notification No. 68/71 dated May 29, 1971, the Central Government exempted articles made of plastics, all sorts falling under Item No. 15A(2) from the whole of the duty of excise payable. 2. The Company filed classification lists on May 5, 1972, March 1, 1974, and August 1, 1974 under Rule 173-B classifying Ion Exchange resins under Tariff Item No. 15-A(2) and claiming exemption under Notification dated May 29, 1971. Each of the classification lists filed by the Company was approved by the....

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.... by the authorities below that Tariff Item No. 68 which is a residuary entry is attracted is incorrect: The second submission of the learned counsel is that the conclusion of the Assistant Collector that Ion Exchange resin is liable to payment of excise duty under Tariff Item No. 68 can be only prospective and consequently, the provisions of Rule 10A are not attracted and the Assistant Collector could not have demanded duty under Tariff Item No. 68 for the period commencing from March 1, 1975 and ending with April 25, 1976. The third submission of the learned counsel is that even assuming that the provisions of Rule 10A are attracted, still as statutory requirements of the Rule are not complied with the action of the Assistant Collector dem....

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....sistant Collector, in the present case, exercised powers under Rule 10A and directed the Company to pay duty alleged to have been short levied but without complying with the requirement of Rule 10A. The rule demands service of notice specifically setting out the amount of duty short levied and calling upon the person liable to pay duty to show cause why such sum should not be made payable. Shri Desai, learned counsel appearing on behalf of the Department, very fairly stated that notice under Rule 10A of the Rules was never served on the Company and consequently, the Assistant Collector could not have demanded duty alleged to be short levied. In our judgment, the failure to issue notice under Rule 10A is fatal to the order passed by the Assi....