- (1.) In the present case we are concerned with printed PVC sheets which have already borne duty of 25%, having been classified under Chapter 39 Heading 39.20, which deals with plastics and articles thereof. We are concerned here with two Assessment Years 1995 -96 and 1996 -97. It is an admitted position that classification in the previous year dated 1st March, 1994 has been accepted by the Department and duty has been charged only once and not twice over as sought to be charged at present. Various show cause notices have been issued relating to these two assessment years started from the show cause notice dated 18th March, 1996. The material part of the said notice reads as under: "Whereas it appears, that M/s. Caprihans India Ltd;, 76, MIC Area, Satpur, Nasik -622007 (hereinafter called "THE SAID ASSESSEE") manufacturer of excisable goods falling under Chapter 39, 49, 59 & 96 of C. Ex. Tariff Act, 1985. Whereas it appears that the said Assessee has mis -classified their product PRINTED PVC SHEETINGS under S.H. 4901.10 with NIL rate of duty instead it is rightly covered by S.H. 3920.39 with duty @ 25% Adv. Whereas it further appears that the product is same as plastic sheet duly printed with design. These designs are not the pictorial representations. In other words, printing or design on plastic sheet is ancillary to its original case as plastic sheet. The printed design do not have fin value in excess of intrinsic value of plastic sheet. The product fetches value because same is plastic sheet and not for design printed on it. As such product is rightly covered by heading No. 39.20 and the classification is also supported by Sec. Note 2 to Sec. VII of Central Excise Tariff Act, 1985. The plastic sheets are not the products of Printing industry as incorrectly claimed by the Assessee. Thus the said Assessee have contravened the provisions of Rule 173B read with Rule 173F of Central Excise Rules, 1944." A plain reading of the show cause notice makes it clear that it is not the Department's case that the product after printing has become a different product known to be Printed PVC Sheets. On the contrary the Department proceeds on the footing that the product after printing is the same as a plastic sheet - the only difference is it is duly printed with design and, therefore, its classification must remain within plastic industry Chapter i.e. Chapter 39 and does not get shifted to the printing industry Chapter i.e. Chapter 49.
(2.) Even the Assistant Commissioner in his order dated November 19, 1997 correctly proceeds on the footing that by mere printing, the fabric does not lose its original identity. However, despite this finding of the Assistant Commissioner, the Assistant Commissioner went on to levy Excise duty twice over in respect of the same product, both times under Chapter 39 Heading No. 39.20.
(3.) The Commissioner (Appeals) by his order dated 30th March, 1999 allowed the Assessee's appeal and stated that based on the Assistant Commissioner's finding that no different product except the product under Chapter 39 Heading No. 39.20 emerges after printing, the resultant product could not be liable to duty again as no manufacture could possibly be said to have taken place.;