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2013 (2) TMI 1 - COMMISSIONER OF CENTRAL EXCISEClassification – whether the waste arisen during the manufacture of Monofilament yarn is to be classified under TSH 5404 10 00 or TSH 39159050 – Assessee were engaged in the manufacture of ‘Synthetic filament yarn’ falling under Chapter Sub-Heading 3916 10 90 and 5404 10 00 of CETA. During the course of manufacture of Monofilament yarn, wastage of Nylon Monofilament yarn generated. Assessee classified such waste under the Tariff sub-heading 5404 10 00 instead of under tariff sub-heading 3915 90 50 – Held that:- In the market parlance assessee’s end product is not known as plastic, but however the Tariff Heading 3915 covers only waste of plastic. Further Chapter 39 does not apply to materials regarded as textile materials of Section XI and the Chapter 54 is also included under Section XI and hence product being textile waste is not classifiable under TH 3915 – Decision of C.C.E., Mumbai-V v. Nirlon Limited [2008 (7) TMI 677 - CESTAT, MUMBAI] applies here wherein revenue was not able to provide evidence regarding classification under sub-heading 3950.90. In U. O. I. v. Plastic Packaging Pvt. Ltd [1995(10)TMI 200 - S.C.]. no specific entry was provided for waste or scrap for the end product of the assessee falling under Tariff Heading 5404 therefore the Department was precluded to bring the waste in question under Tariff Heading 3915. Waste in question would not merit classification under TH 3915 since the assessee’s end product itself is classified under TH 5404 and besides Chapter 54 there was no specific TH to cover the waste, which arises during the manufacture of final product – Therefore waste arisen during the manufacture of Monofilament yarn should be classified under TSH 5404 10 00 – In favour of assessee
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