TMI Blog1987 (10) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... by double or multiple laminations. The appellants contend that Item 27(c) did not indicate the duty would be liable for further laminations of foils. The Asstt. Collector was of the view that the duties are chargeable on double or multiple foils after the double or multiple laminations are completed. On appeal, the Collector confirmed the findings. 2. Sh. N. Mookherjee, Ld. Counsel for the appellants submitted that the appellants are paying duty at the stage of the first backing with reinforcing materials and there was no justification for charging duty at the stage of subsequent reinforcements. He further submitted that the duty could be charged only under Tariff Item 68 and not under Tariff Item 27(c). He showed us samples of the produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcing materials could only be classified under Tariff Item 68 and not under Tariff Item 27(c). It is well settled that the recourse to Item 68 should be the last resort and we have to examine whether the product could be classified under Items 1 to 67 before we assign Item 68. The Tariff Entry 27(c) refers to foils (whether or not embossed), cut to shape, perforated, coated, printed or backed with paper or other reinforcing material), of a thickness (excluding any backing) not exceeding 0.15 mm. The products whether with a single lamination of paper or multiple laminations with foil/paper/polythene etc., would only qualify to attract duty under Item 27(c) for the product despite the multiple laminations would continue to be foils. The main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermination for the purpose of duty should be the intrinsic value of the product at the time of clearance. The totality of the several processes would normally result in substantial transformation at each and every stage and the ascertainment of duty should be determined at the point of clearance. In this background, if we analyse the facts of the present case, it is reasonable to conclude that the payment of duty at the stage when a single lamination is only to get-over the liability to pay duty at a higher value despite the transformation of the product by virtue of the multiple laminations. The SDR also drew our attention to the principles of interpretation and where words are used in the regulation of identical, singular words will inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e charged to duty under Item 27(c) CET; subsequent reinforced multiple backed foils are not to be charged duty because the same foil, later give backing/reinforcement, had already been charged the same duty. 7. This demand has one aim - to pay duty on a foil priced much less than the multiple backed foil. By so doing, the factory would avoid duty. This is not permissible. The duty must be calculated at the highest value that the foil attains when it enters the market. This is the essence of assessment. 8. The learned counsel for India Foils made much of the terminology in Item 27(c). He said the words backed with paper or other reinforcing material specify one backing, not a plurality of them. Hence, under the law, the first laminat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with paper or other reinforcing material it meant the backing must always be a single layer, as if it did not know that there are multiple-layered backings too. If anything, the multiple backed foil is a better backed foil, stronger, more durable, not to mention the higher value, and hence a stronger contender for taxability. A reasonable construction is what we are always called upon to make. Would it not be unreasonable to say that the multiple-backed foil goes duty free but the single backed foil must pay? The more reasonable reading is to say that all backed foil, whatever the number of backings, must be levied to duty. 11. I, therefore, order that the foil must be assessed at or after the stage of last backing or backings. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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