- (1.) Under tariff item 15a duty can be levied on artificial or synthetic resins and plastic materials. The rate of duty is specified under column 3 of the said tariff item.
(2.) Under Rule 8 of the Central Excise rules, 1944 the Central Government has the power to issue a notification exempting from payment of duty certain excisable articles as is provided in any of the tariff items.
(3.) It is in exercise of this power under rule 8 that a notification No. 68/71-CE dated 29-5-71 was issued which reads as follow : Exemption TO ARTICLES MADE OF plastics : in exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise rules, 1944, the Central Government hereby exempts articles made of plastics, all sorts, falling under sub-item (2) of item 15a of the First Schedule to the Central excises and Salt Act, 1944 (1 of 1944) except (i) rigid plastic boards, sheeting's, sheets and films, whether or not; and (ii) flexible polyvinyl chloride sheeting's, sheets, films and lay-flat tubing's not containing and textile material, from the whole of the duty of excise leviable thereon; Provided THAT (a) such articles are produced out of the artificial resins and plastic materials or cellulose esters and others in any form falling under sub-item (1) of the said item, on which the duty of excise of the additional duty under Section 2a of the indian Tariff Act, 1934 (32 of 1934) as the case may be, has already been paid; or (b) such articles are produced out of scrap of plastics.;