TaxTMI 
TaxTMI 
1990 (12) TMI 101
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....ed into high vacuum metallizing machine where thin coating of aluminium is deposited on the films by condensation of aluminium vapour. Thereafter the said metallized roll or film is further given coating of chemicals which is called lacquering for the purposes of protection against washing, rubbing, etc. Whenever some colour is to be given to the material, suitable dyes are also added to the lacquer. The lacquerized polyester film is made useful for the purposes of preparing metallized yarn or it can be used as stamping foil. For preparing stamping foil while metallizing and lacquering polyester film the metal and lacquer is applied in such a manner that it can be transferred to the article on which name or monogram is to be embossed. This type of polyester film metallized and lacquered is called "Stamping Foil". It is the say of the petitioner that in 1972 the second respondent raised the question that metallized and lacquered films were dutiable under Tariff Item 15A(2). Thereafter the petitioner filed Special Civil Application No. 188/73 against the respondents challenging the attempted levy of Excise duty under Item 15A(2) in respect of the metallized and lacquered polyester fi....
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....otice. It was also pointed out that the Central Excise Act and Rules are being enforced uniformly in all the Collectorates of the country by the Central Excise Officers and Audit Party of the Central Excise and the Accountant General. Therefore, there is no question of levying Excise duty on stamping foils. Therefore show cause notice dated 2-5-1980 (Annexure 'D') was issued by the Superintendent of Central Excise, Division II, Baroda, wherein the Department claimed payment of the amount of erroneous refund of duty as on detailed inquiry of the party's product it is found that the party is manufacturing "stamping foil" after colourising the metallized films with imported dyes in different colours according to requirements and cutting it into required size and designs. It is also mentioned that the end use of stamping foil and its characteristics are different from the metallized and lacquered film sheet. The stamping foil is liable to Central Excise duty under Tariff Item 68. The petitioner has challenged before this Court the said show cause notice and has demanded refund of Rs. 4,806.85 collected by the respondents under threats and coercion by contending that stamping foil would....
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....here specified, but excluding - alcohol, all sorts, including alcoholic liquors for human consumption; (b) other narcotic drugs and opium, Indian hemp and narcotics; and (c) dutiable goods as defined in Section 2(c) of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (16 of 1955). 10-12-1990             7. From the aforesaid Item 15A(2) it is abundantly clear that all sorts of plastic articles are covered by the said Item. It also specifically provides along with other things that it includes foils. Admittedly stamping foils are manufactured from the plastic material which is covered by Item 15A(2). As stated above, the process of manufacturing stamping foils is of metallizing polyester films and thereafter giving further coating of chemicals which is called lacquering for the purposes of protection against washing, rubbing, etc. Suitable dyes are added to the lacquer whenever some colour is to be given to the material. For preparing stamping foil the metal and lacquer is supplied to the polyester film in such a manner that it can be transferred to the art....
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.... or not it cannot be held that stamping foils which are product of plastic articles would fall within residuary Item 68. In the case of Dunlop India Ltd. v. Union of India, A.I.R. 1977 S.C. 597, the Court has observed as under:- "It is good fiscal policy not to put people in doubt and quandary about their liability to duty. When a particular product like V.P. Latex known to trade and commerce in this country and abroad is imported, it would have been better if the article is, eo nomine, put under a proper classification to avoid controversy over the residuary clause. As a matter of fact in the Red Book (Import Trade Control Policy of the Ministry of Commerce) under Item 150 in Section II, which relates to 'rubber, raw and gutta percha, raw' synthetic latex including vinyl pyridine latex and copolymer of styrene butadiene latex are specifically included under the sub-head 'Synthetic Rubber'. We do not see any reason why the same policy could not have been followed in the I.C.T. book being complementary to each other. When an article has, by all standards, a reasonable claim to be classified under an enumerated item in the Tariff Schedule, it will be against the very principle of ....