Home Case Index All Cases Central Excise Central Excise + SC Central Excise - 1985 (3) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1985 (3) TMI 62 - SC - Central ExciseWhether the plywood manufactured by the Respondent and utilised by the respondent in manufacturing plywood circles to be used as component parts of packing material for wires and cables is exigible to excise duty under the Central Excises and Salt Act, 1944? Held that:- Item 16B makes it clear that plywood in sheets, blocks, boards or the like attracts excise duty. A special provision by way of exception is made only in the case of plywood for tea-chests when cut to size in panels or shooks and packed in sets. The provision in Item 16B that plywood in sheets, blocks and board or the like, which attracts duty is indeed in very broad terms and the expression `like' does necessarily include circles. There is nothing to indicate in this item that plywood must be trimmed or sanded. Plywood is manufactured as soon as it comes out of the press, though the same may not be trimmed or sanded out of which circles are to be produced. There is nothing to indicate that plywood in panel stage, not trimmed and not sanded, is not known in the market as plywood. Plywood when it comes out of the press at the panel stage, therefore, clearly falls within Item 16B of the First Schedule, and the authorities concerned were, therefore, justified in seeking to levy duty on plywood at the panel stage. We are, therefore, of the opinion that the High Court was in error in allowing the writ petition and in quashing the said two Notices. We must, therefore, allow the appeal and set aside the judgment of the High Court holding that the two notices issued which were quashed by the High Court, are valid and lawful.
|