1980 (10) TMI 81 - HC - Central Excise

Summary

Issues Involved:
1. Classification of plastic torches under the Central Excise Tariff.
2. Applicability of Tariff Item No. 15A(2) vs. Tariff Item No. 68.
3. Validity of the order passed by the Central Government rejecting the revision application.
4. Interpretation of the term "articles made of plastics" in trade parlance and legal context.
5. Binding nature of previous licenses and trade notices on the current classification.

Detailed Analysis:

1. Classification of Plastic Torches under the Central Excise Tariff
The central issue is whether the plastic torches manufactured by the petitioner fall under Tariff Item No. 15A(2) or Tariff Item No. 68 of the Central Excise Tariff. The petitioner claims that the plastic torches should be classified under Item No. 15A(2) as "articles made of plastics, all sorts," while the Excise Authorities argue that these torches are not articles made of plastic but fall under the residuary Item No. 68.

2. Applicability of Tariff Item No. 15A(2) vs. Tariff Item No. 68
The court noted that the Finance Act of 1975 introduced Item No. 68 to cover goods not specified elsewhere in the schedule. The Excise Authorities amended the classification list, directing that plastic torches be treated under Item No. 68. The Appellate Collector and the Central Government upheld this view, stating that a torch is not known in trade parlance as an article of plastic but as a portable electric lamp, hence classifiable under Item No. 68.

3. Validity of the Order Passed by the Central Government
The Central Government's order dated 26th December 1978, rejecting the revision application, was based on the interpretation that Tariff Item No. 15A(2) does not cover articles like torches. The court found the reasoning of the Central Government flawed, emphasizing that the use of the word "including" in Item No. 15A(2) was meant to clarify that all articles made of plastic, not just those similar to tubes, rods, sheets, etc., fall under this item.

4. Interpretation of the Term "Articles Made of Plastics"
The court examined whether the plastic torches could be considered articles made of plastic under Item No. 15A(2). It concluded that the term "articles made of plastics" should include all articles made from plastic materials, not limited to those resembling tubes, rods, sheets, etc. However, the court also noted that the plastic torches, being composite articles with non-plastic components, could not be classified solely as articles made of plastic.

5. Binding Nature of Previous Licenses and Trade Notices
The petitioner argued that previous licenses and trade notices treated plastic torches as articles made of plastic, hence they should be classified under Item No. 15A(2). The court acknowledged that earlier licenses and approvals might have indicated such a classification but emphasized that these were not binding. The court also reviewed trade notices and concluded that they did not support the petitioner's claim that plastic torches should be classified under Item No. 15A(2).

Conclusion
The court concluded that the plastic torches manufactured by the petitioner do not fall under Tariff Item No. 15A(2) but under Tariff Item No. 68. The petition was dismissed, and the impugned decisions were upheld, though for different reasons. The parties were directed to bear their own costs.