TMI BlogCentral Excise - Classification of waste generated due to misprinting, improper lamination and wrong sealing of the printed articles of plastics in Roll and Pouch form - Clarification regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... printed articles of plastics in Roll and Pouch form - Clarification regarding. Doubts have been expressed regarding the classification of defective plastic sheets and defective plastic pouches arising in the course of manufacture of printed sheets of plastics and printed plastics pouches, whether classifiable as waste, parings and scrap of plastics under Heading 39.15 of,CET. Further, doubts have also been expressed as to whether duty paid on inputs contained in such defective sheets/pouches which has been taken as credit should be varied in case such defective sheets/pouches are treated as waste classifiable under Heading 39.15. 2. The matter has been examined. It is reported that three types of wastages normally occur during the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 3920.38 as 'flexible laminated sheets of plastics'or sub-heading No. 3929.90 as 'other articles for the conveyance or packing of goods, of plastics'. As per the Explanatory Notes under Heading No. 39.15 of HSN which corresponds to Heading No. 39.15 of CET, the Heading covers products which may consist of broken or worn out articles of plastics clearly not useable for their original purposes, or of manufacturing waste shavings, dust, trimmings etc.). As the Heading No. 39.15 of CET is aligned with the corresponding Heading of HSN, it is possible to take a view that defective sheets/pouches, which cannot be put to the original use for which they are ment, are to be treated as waste. Though HSN Explanatory Note is in the context of broken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... misuse of such classification, the assessing officers should satisfy themselves about the exact nature of such waste. 5. As regards the issue whether MODVAT credit requires to be varied if such wastes are classified as 'waste, parings and scrap of plastics' falling under Heading 39.15, it is observed that under the provisions of Rule 57D of Central Excise Rules, the credit cannot be varied merely because a part of the input is contained in waste arising in the course of manufacture of the final products irrespective of the fact whether such waste is cleared on payment of duty or not. In the light of the provisions of Rule 57D, varying of credit in the cases referred to above does not arise. 6. The above clarification may be brought to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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