TMI Blog1991 (7) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... acked with plain or printed paper for the purposes of making the same suitable and serviceable for packing the products. Gum is applied to one side of the foil by passing it over a roller dipped in adhesive and the foil with adhesive applied to one side is combined with plain or printed paper resulting in paper backed aluminium foil. 2. Tariff Item No. 27 of the First Schedule to the Central Excises and Salt Act, 1944 provides for levy of excise duty on aluminium and Entry 27(c) reads as under : Item No. Tariff Description Rate of duty (1) (2) (3) 27. Aluminium- - - - - - - (a) - - - - - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to explain the process of backing of the aluminium foils and the Company informed in detail the process of backing the aluminium foil. The Company filed the classification list on April 11, 1983 claiming that the process of backing does not amount to manufacture and the Company is not liable to pay excise duty under Tariff Item No. 27(c) on duty paid aluminium foils. The Company then filed the present petition on September 9, 1983 restraining the respondents from levying or collecting duty on paper backed aluminium foils and for refund of Rs. 1,12,31,558.94 in respect of period between February 1980 and August 31, 1983. It is required to be stated that from March 1, 1986, the Central Excise Tariff Act came into force and aluminium was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obtained from duty paid paper amounts to manufacture. On this basis, the Supreme Court held that once the polyethylene laminated or coated kraft paper from duty paid kraft paper is brought into existence by process of manufacture, then the fact that the duty has been paid on the kraft paper is irrelevant. We are unable to appreciate how the decision of the Supreme Court supports the claim of the Department in the present case. The decision of the Supreme Court proceeds on the basis that process of polyethylene lamination amounts to manufacture. In the present case, it cannot be even suggested that the process of backing aluminium foil with plain or printed paper amounts to manufacture. We have set out hereinabove the process adopted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Accordingly, rule is made absolute and show cause notice dated August 25, 1988, copy of which is annexed as Ex. 'K' and which covers the period prior to March 1, 1988 is quashed. The Company is entitled to refund of duty paid under mistake for the period commencing from three years prior to February 1983 and ending with Feb. 28, 1988. The respondents are directed to verify the amount of refund payable to the Company for the said duration within a period of eight weeks from the date the Company produces all the requisite documents. The respondents, on verification, shall refund the amount within a period of two weeks from the date of completion of verification. In the circumstances of the case, there will be no order as to coats. The Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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