Order

Civil Appeal Nos. 4964-4973 of 1985 (with Civil Appeal Nos. 3006-14/88, 3949/88, 1234-43/90, 3302-06/90, 789-822/91, 823-825/91, 4944-47/90, 2931-32/86, 2933-34/86, 2935-60/86, 3079/88, 1775/89, 352-353/93).

Normally it is the assessee who does tax planning but this is a case where one finds that it is the Revenue which has done tax collection planning.

2. The appellants imported consignments of polyvinyl alcohol on which additional duty under Section 3 of the Customs Tariff Act was sought to be imposed. The contention of the appellants before the authorities was that polyvinyl alcohol when manufactured in India from vinyl acetate monomer, on which appropriate amount of duty has been paid, is subjected to a concessional rate of excise duty of 10% ad valorem, instead of the normal duty of 40% and, therefore, the appellants should also be required to pay the additional duty at this reduced rate.

3. When the case came up for hearing before the C.E.G.A.T., it came to the conclusion that the appellants were not entitled to the benefit of the notification whereby reduced rate of duty could be paid. It was held by the Tribunal that Excise Notification of Exemption could not apply while