. DECORATIVE LIMINATES (INDIA) PVT. LTD. vs COLLECTOR OF CENTRAL EXCISE, BANGALORE. Supreme Court, 31-07-1996

Court:Supreme Court (India)
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 3
PETITIONER:
DECORATIVE LIMINATES (INDIA) PVT. LTD.
Vs.
RESPONDENT:
COLLECTOR OF CENTRAL EXCISE, BANGALORE.
DATE OF JUDGMENT: 31/07/1996
BENCH:
THOMAS K.T. (J)
BENCH:
THOMAS K.T. (J)
BHARUCHA S.P. (J)
CITATION:
JT 1996 (7) 627 1996 SCALE (5)582
ACT:
HEADNOTE:
JUDGMENT:
J U D G M E N T
THOMAS, J.
This appeal is in challenge of an order passed by the
Customs, Excise and Gold (Control) Appellate tribunal
(CEGAT) repelling the contention of the appellant that the
commodity commercial plywood processed by the appellant is
not liable to excise duty as the duty was paid for the
plywood before its processing.
The case of the appellant - company is the following.
Appellant is engaged in processing commercial plywood by
applying Phenol Formaldehyde Resin under 100 per cent heat
and pressure and costs the plywood with wire mesh, either on
one side or on both sides so as to make it slip proof
commercial plywood. The product is mostly used in body
building of vehicles or for flooring etc. On 3.9.1986, the
assistant Collector of Central Excise issued show cause
notice to the appellant company, in which it was stated that
since non-slip plywood is a different products it is liable
to duty as falling under sub-heading 44008-90 (Chapter 44 of
the Schedule to the Central Excise Tariff Act, 1985).
Appellant in the reply he explained that commercial plywood
was once subjected to duty and hence cannot again be made
dutiable merely on the strength of the processing done by
the appellant. The processed commodity does not become a
different product not the processing exercise a manufacture
according to the appellant. Some earlier proceedings, which
culminated in refunding the duty collected on such products
when the department latter realised that no duty was
chargeable on such commodity, have also been relied on by
the appellant to bolster up its stand.
The Assistant Collector took the view that the slip-
proof commercial plywood (made after carrying out the
processing work) is a different products and so is liable to
duty under the relevant subheading of the Schedule to the
Act.
Collector of Central Excise (Appeals) confirmed the

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