1996 (12) TMI 84 - SUPREME COURT

Whether both natural colour polystyrene and the corresponding coloured grain had been classified under Tariff Item 15A(1)(ii)?

Whether the Tribunal was right in holding that the appellants should pay excise duty as at the coloured stage, but limiting the quantum thereof to that which would have been paid had the demand under Tariff Item 68 been sustained?

Held that:- The Tribunal should not, in this case, have passed an order which proceeded upon a basis that is altogether different from that of the demand made upon the appellants. That is not "moulding" relief. The demand that was made upon the appellants was under Tariff Item 68 and it proceeded upon the basis that there was a process of manufacture of coloured polystyrene from uncoloured polystyrene. Having come to a conclusion against the Revenue on these counts, the appropriate order for the Tribunal to have passed was to have set aside the demand and left it open to the Revenue to proceed against the appellants, as permissible under the law. The appellants would then have had the opportunity of meeting the precise case made out by the Revenue. Assessee appeal allowed.